Our Ford bad credit finance center won’t take your situation lightly; you wouldn’t be here if you didn’t need a good car and a reasonable loan, and that’s exactly what you’ll get with us.
If you’d like to get in touch, simply give us a call or send us a message online! We’d love to help you get into a reliable new or used Ford, and our auto financing options for bad credit might be the perfect fit. Our dealerships is located right off Highway 74, so there’s easy access from Carlisle, Harrisburg, York, and more--check out the map for easy driving instructions.
And don’t forget that you can use our secure online tools to get a head start. From determining the value of your trade in vehicle to pre-applying for an auto loan, you can get ahead by using our online tools.
Need Auto Financing? Bad Credit Won’t Stop You
If your financial circumstances took a turn for the worse (whether it’s your fault or you are simply the victim of circumstances), you might see your credit score plummeting. Whether you’re reeling after a missed mortgage payment, buried in credit card debt, or struggling through a divorce or bankruptcy filing, life events can hurt your credit score rather dramatically.
That doesn’t change the fact that you have to have a reliable car to get along though; work doesn’t come to an end, kids still need to go to school, and you have a life to live! Without a reasonable car loan for bad credit, you may not be able to get where you need to goo.
There’s good news: you can still get an excellent loan for a new or used car at our Ford dealership even if you have bad credit. We have various lenders to work with, and some of them offer guaranteed approval car loans, or they specialize in financing for individuals with damaged credit. If this sounds like a good fit for you, we encourage you to get in touch. We’d like to help get you back on your feet, and an affordable loan is a great place to start.
Here’s How Auto Financing for Bad Credit Works
So is it that some lenders can offer loans to individuals with bad credit while others can’t? It all comes down to how much risk they are willing to take on.
Now you’re probably thinking, “I’m not risky!” And you probably aren’t. The fact is, lenders only have one real metric to go by when they try to measure your creditworthiness. And that is your credit score. If your credit score is lower than average (or exceptionally low), the way lenders mitigate risk is by charging a high interest rate.
This comes in the form of APR with car loans. The Annual Percentage Rate is essentially the fee you pay for the privilege of borrowing money, that fee comes as an annual percentage paid increments each month. A normal APR could be 4-5%, and low APR might be 3% or less, and APR for individuals with bad credit might look like credit card interest: 10% or more.
By charging higher interest, the lender recoups more of its money back earlier in case you eventually default on the loan. But if you continually make your payments, it can be a huge step in repairing your damaged credit.
My Credit Has Improved - Do I Have to Keep Paying such High Interest?
Over time, as you make payments on time, keep you credit card balances down, and become more and more removed from the event that sent your credit spiraling downward, you will hopefully see your credit improve. Depending on financial events in your past, you may see your credit improve dramatically.
If this happens, you might want to consider refinancing your loan. This only happens when your creditworthiness improves significantly, and it’s only worth the effort if you can get improved in a 1% or more reduction of your APR.
What happens is this: another company buys out your current loan, and you now start paying them back rather than your previous creditor. If your risk level has lowered, you’ll only pay the new APR rate, which can save you thousands of dollars by the end of a 60 month payment term. If you’re stuck in a high interest loan, but you think you’re now qualified for a lower-interest loan, please get in touch. We can help you, and our Ford dealership is familiar with all aspects of bad credit car financing.
Getting Bad Credit Car Financing while in Bankruptcy
Bankruptcy can be a crippling experience, both personally and financially. But it doesn’t have to be that way! Not only can you recover over time, but you can take care of the needs of your family or yourself in the short term as well.
The most common kind of bankruptcy filing is Chapter 7, in which most of your assets are liquidated and used to pay back companies that you owe money to. The whole process--assessing the value of your assets, court hearings, etc.--can take 4-6 months, and you probably won’t be able to obtain a loan during that time period. As soon as your debts have cleared, though, you can start by contacting a lender who specializes in loans for people with damaged credit.
If you have to file for Chapter 7 bankruptcy while you currently are making car payments, you may have to “reaffirm” your loan with your creditor. It’s a document you sign that says you can retain your current interest rate. This is important because it’s most likely that the current interest rate will be much lower than anything you could receive after filing for bankruptcy. There are severe consequences if you default on payments after reaffirming, but if you can continue to pay, your vehicle ownership will be uninterrupted.
Individuals who file for Chapter 13 bankruptcy have an easier road ahead. Chapter 13 involves a debtor (typically one with a steady stream of income) agreeing to repay all of his or her debts over the course of several years. A “trustee” will be appointed over your financial decisions, and if the trustee signs off on it, you will be able to sign up for a car loan despite your bankruptcy filing.
Make Smart Financial Decisions by Utilizing Free Online Tools
One way to get prepared for loan applications, bad credit car financing, or car buying is to use one or all of the free online tools at your disposal. You can get started by assessing the value of your used car--in many cases, a bad credit loan will require a substantial down payment. It can tough to come up with a 20% down payment, but it’s possible when you factor in the value of your current used car.
The free tool on our website is powered by Kelley Blue Book, so you can trust the value it gives you. It measures factors like make, model, year, repairs, mileage, and more. Once you’ve traded in your car, you can apply that money directly towards your new one. In some states, you’ll only pay sales tax on the remaining value of your new car after the value of your trade-in has been subtracted.
You can also get pre-approved for a car loan on our website. You don’t need to walk into the dealership hoping to get approved, or spend hours looking for cars without knowing you can pay for them. All you have to do is enter some basic address, contact, and employment data (and likely your drivers license #) and we will be in touch about the credit you’re eligible for.
If you have any questions about the safety or value of our online tools, please let us know! We’d love to hear from you and help you make smart financial decisions.
How Much Car Can You Really Afford?
Another tool that is very helpful to use is the car loan calculator. The reason is this: a car’s ticket price is only part of the actual cost of ownership. You still have to factor in taxes, fee, and APR, and buyers’ eyes can sometimes be bigger than their wallets when it comes down to car prices. Look at it this way:
Assuming a 10% APR (interest rate), if you take out a $30,000 loan, and you repay it over 60 months, the total amount that you’ll pay the lender is over $38,000. That means the fee for taking out a loan is over $8k. That’s a significant amount of money.
That’s why, if you’re struggling with poor credit, you should minimize what you have to borrow as much as possible. That may come in the form of a larger down payment, or you may have to be realistic about cars you’re eligible for. Either way, it’s a regular concern for those trying to repair their credit.
If you have questions about car financing for bad credit, please get in touch! We’d love to help you.