Most people that need to buy a car and have bad credit and going to have a challenge, a bit of a tough time if you’re going to say a Ford or Chevrolet dealer, big dealerships.
- What you need to do is you need to go to a smaller, buy here, pay here, maybe a small chain in your town that deal with challenged individuals or people that have non-existent credit or bad credit.
- Most of those dealers are setup with secondary finance companies that deal strictly with people that have bad credit or non-existent credit as opposed to the bigger dealerships, the big chains, the big Ford dealerships or the big Chevrolet dealerships.
- Go to a smaller, buy here, pay here and most of those will have secondary financing. That’s exactly how you get a car loan with bad credit or non-existing credit.
How to Calculate an Auto Loan?
In order to calculate an automobile loan, you have to have credit, or enough credit to buy the vehicle in the first place.
- Once you’ve purchased the vehicle, the loan is based on the loan amount, its also based on your credit, its based on much money you’re putting down, mileage and year of the vehicle. All those give you the terms of the loan on your vehicle. Now the better the credit, the lower the rate.
- The longer you take out the loan for, the higher the rate. So there’s a lot of factors that contribute to the calculation of your monthly payment, again the year has a lot to do with it, your past vehicle payment history is also important on an automobile loan.
- If you have bad credit, there are secondary lenders out there, that will also give you loans but the rates can be much, much higher to obtain the loan and that is how it’s calculated.
How to Refinance a Car?
A loan to refinance your vehicle can be obtained several ways.
- The first way is to go to your local bank or a credit union, whoever you have an account with and try to get a loan from them. They will have, most lenders or most banks will have special departments and special programs for automobile loans. Now if you have good credit, I suggest you go to your bank that you deal with first and then perhaps a secondary lender or a lender that deals directly with automobile loans.
- If you have bad credit, there are plenty of lenders out there, secondary type lenders that will refinance your existing car loan.
- Now if you have good credit and when you obtain the vehicle, you have bad credit, then its certainly wise to refinance it since you’re going to be saving a lot of money by either going to your bank or going to secondary type of lender and those are the ways how to refinance a car loan.