Car Loans With Bad Credit

Guaranteed Financing in York, PA

Contact Bob Ruth Ford
700 North US Route 15
Dillsburg, PA  17019
(877) 818-1593
Sales Hours
9:00a - 8:00p
9:00a - 8:00p
9:00a - 8:00p
9:00a - 8:00p
9:00a - 8:00p
9:00a - 5:00p

Credit scores are reactionary and unforgiving; life can come at you fast, and even a minor slip-up may negatively impact your credit score. It can take months of hard work to raise your credit score to suitable levels after a significant missed payment, and if you are dealing with a difficult bankruptcy declaration or something of similar magnitude, it can take even longer.

That’s where bad credit car loans come into the picture. We believe that everyone should be able to drive a reliable car, and believe it or not, maintaining regular vehicle payments can actually help you build stronger credit in the long run.

If you need a bad credit car loan in PA, don’t hesitate to reach out our continue reading. You can use all of our free tools to get started: the credit application tool, the car affordability calculator, and the Value Your Trade tool will all set you on the right path.

Do you have any questions about credit or obtaining a car loan? If your questions aren’t answered here, we’d love to hear from you. Just get in touch or visit us at our dealership along Highway 15.

The Process for Getting Bad Credit Car Loans is Quick, Easy, and Private

No one you know will have to know about your credit score, and almost all of the preparation for receiving bad credit car finance is done through secure forms online -- you can fill these out in the comfort of your own home.

Having bad credit is extremely common, so you don’t have to feel alone or embarrassed. Even a single missed payment in a time of need can dramatically impact your credit score.

The only people who may have to get involved are the trained, experienced professionals at our Ford finance center in York, PA. They understand the ins and outs of financing, obtaining loans, interest rates, and more, and they can help you make a sound financial decision when it comes to buying a car.

Our goal is to help you get a reliable car as easily as possible. If you have any questions about who you’ll be working with to obtain a loan, please get in touch -- we’d love to help.

Use our Auto Loan Calculator to Plan Monthly Payments

One easy way to make a smart decision on a new car to buy is to use our free, easy-to-use Auto Loan Calculator.

All you have to do is enter the vehicle information about the car you’d like to buy (information about its cost) and then the specifications about your desired payments. For instance, what percentage of a down payment you can make, how much your trade in vehicle is worth, how long your loan term will be (usually 60 months) and what your estimated APR will be. Here’s a sample.

On a $25,000 car, you might enter these metrics:
  • You can afford a 20% down payment ($5,000)
  • You are trading in a car and receiving $3,000 cash
  • Your estimated term is 60 months
  • You have 4.5% APR

With all of that info on hand, you can be empowered to make a wise decision -- buyers sometimes forget to factor in fees and interest, and those costs always total a significant amount of money in the end. That’s why you don’t have to get a bad credit car loan in Harrisburg, PA without speaking to one of our experts, though; give us a call if you have any questions.

About Interests and Fees When Buying a Car

How will Interest and loan terms impact the overall cost of your car? It’s important to carefully calculate the total cost of your new vehicle, not just the cost printed on the tag. Buyers sometimes overlook the magnitude of costs associated with APR.

Here’s the deal regarding car loans for buyers with a turbulent credit history; they are more expensive. Here’s how.

When you take out a car loan, a lender is letting you borrow a large sum of money. You pay for that service through interest, and when it comes to car loans, that interest is reflected as Annual Percentage Rate (APR). The amount of risk you present to the lender determines how high your APR is. Since customers with lower credit scores present greater risk, your fees will be higher, and your APR could be well above 10% or more.

For instance, you could take out a $30,000 loan to buy a new car with an APR at the high rate of 12%. Now stretch payments out over 5 years (a perfectly normal length of time), and your monthly payments will be $667.33 -- that totals $40,040.01 over five years. That’s additional $10,000+ that you have to spend just for the privilege of getting a loan.

If you change the APR to 4% in that same equation, your monthly payments are just $552.50. With that perspective in mind, carefully consider how much car you can really afford. The key here is lowering the loan amount you need; you can still get whichever car you want, but you’ll need a larger down payment in order to cut down on loan costs.

What if Your Credit Score Improves?

Sometimes customers really need a certain type of vehicle, and despite the fact that their credit score is low, they determine that they should take out a loan with high APR and pursue that vehicle. Over time, as their credit score improves, they may be eligible for a lower Annual Percentage Rate; when that happens, they can refinance their loan.

To refinance a loan, the buyer finds a new lender, applies, and the lender “buys out” the current loan from the original lender. The customer then makes payments at the reduced interest rate to the new lender. If you become eligible for a interest rate reduction of more than 1%, it’s a good idea to go ahead and refinance. If the new rate is less than 1% improvement, then we recommend continuing to strengthen your credit until you can pass the 1% threshold.

What is a Guaranteed Approval Car Loan, and How do I Get One?

In some cases, lenders offer a 100% guarantee that you can get a loan, no matter what your credit score is. They may or may not be doing you a favor.

They offer mitigate this risk with astronomical interest rates, and incurring more and more interest on your existing date will only make it harder to get debt-free. Taking on a high APR car loan can closely resemble the dangers of credit card debt.

In some cases, however, you may be able to get a reasonable loan despite your circumstances. Here are two factors:

  • If your low credit score is a result of an event or circumstance in the past, and since that time, you’ve demonstrated a significantly increased income (and you can show pay stubs) or improvement in lifestyle, you may not be classified as high risk.

  • If you can have a close relative with good credit “co-sign” your loan; this means that they agree to be held responsible for payments if you default. This should be considered only when absolutely necessary, and after much consideration.

  • How to Get a Bad Credit Car Loan After Bankruptcy Filing

    If you had to file Chapter 7 bankruptcy, you have to wait about four months after filing for your debts to be resolved and for the case to be over and done with. Theoretically, you can apply for a car loan at that point, but should you do that? That’s a different question entirely.

    The long-term impact of bankruptcy includes a dramatic hit to your credit score, and that can take a while to repair. Rushing into a car loan after bankruptcy will set you up with high interests rates that can drive you further into debt. It would generally be smarter to work hard at building your credit score up before applying for a loan.

    If you file for Chapter 13 bankruptcy, your trustee may clear you for a loan after a certain amount of time. These situations should be considered on an individual basis.

    You can start building your credit score again as soon as your debts have cleared and your bankruptcy case is settled. You just need to pay bills on time, keep more than 70% of your credit limit free at all times (in other words, don’t spend more than 30% of your available credit card limit), and keep you credits/debits ratios in check. You’ll watch your score improve month over month and be in good shape for a car loan.

    If you have any questions about bad credit car loans, tips for improving your credit score, or anything else, please don’t hesitate to get in touch. We’d be happy to hear from you, help you along the path to car ownership, and empower you to make wise financial decisions.
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