It's worth it to stay on top of your credit score, especially when buying a used car with bad credit. Knowing how credit score affects used car loan financing can help you better understand and appreciate the value that used car dealerships can bring to you with their in house used car financing for bad credit, such as West Valley Auto Plaza, as shown in this video.
3 Different Levels of Bad Credit
There are three different levels of bad credit car buying that you should know about. The best way to categorize the levels is by credit score range. The features of each level are from traditional lending institutions. Remember though, as you see in the video, we can help you buy the used car or truck you need, without the hassle, embarrassment, and frustration from these traditional banks or credit unions.
- 519 Credit Score and Below
- Your interest rates are usually in the 20's
- Loan terms are shorter (under 54 months)
- Down payments are usually larger (sometimes 30% or more), and vehicle selection is limited. Besides, there aren't many traditional lenders to choose from.
- 520 - 580 Credit Score
- Interest rates are in the high teens
- Loan terms up to 72 months (on select vehicles)
- Down payment in the 10-20% range.
- 581 - 620 Credit Score: The Non-Prime Credit Tier
- More lenders are available
- More favorable interest rates (from 12-18%)
- You typically can borrow more.
- You generally need less money down (and in some cases no money down).
If you fall in this range you would be in the sub-prime credit tier.
From a typical lending institution:
It is to these "credit challenged" or bad credit car buyers that we perform our greatest service. West Valley Auto Plaza has programs for those with bad or less than perfect credit-programs to get you approved, financed, and on track to improve your credit rating. Programs, like the used car buying programs this week, that get you into used cars for only $99 down. And, of course, to get you into that car or truck you need-today!!
If you fall into this range, you would be in the upper sub-prime and lower non-prime credit tier.
There are many more options for you here in the non-prime credit tier:
West Valley Auto Plaza’s goal is to get you back on your feet in a good reliable pre-owned vehicle that you can afford at a fair price regardless of your credit situation. This is what we’ve done for over 11 years now, and this is what we’ll do for you. Feel free to shop around and see what others have to offer. We know you’ll end up choosing us, because we are the best out there, and we won’t jerk you around!
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