Subprime auto loans can be tough because they are given to buyers that have bad credit and mostly can’t afford to pay back the auto loan in a fashion that makes sense.
You need a good solid wage to pay back a bad credit auto loan for the most part. Yes $2,000 will help a month. But its not all that you should be worried about it’s the interest rate because subprime auto loans will have an interest rate of 12% over for years and that’s a lot for a car loan in Chicago.
Note that a good credit car buyer might pay 3%-4% on a car loan so there is a lot of interest the bank is making on you. So, working on that credit score and getting it to a 600 or above will help in a lot of cases.
Down Payment is important for a used car in Chicago
Now when your talking about down payment yes you will want and make it $500 down on a used car or more if you have it. Just don’t miss a payment because the banks can come back and get the vehicle and they keep the down payment and resell the vehicle. Its always a good idea to stay on top of the car payments.
One other thing to watch for is when you have subprime credit and need a subprime auto loan in Chicago you better test drive the car and more than likely the car is going to be a used car, so you want to make sure the car dealership has taken care of it.
The down payment can help the interest rate with the auto lenders so making it a large down payment for a used car in Chicago may be in your favor.
Most car buyers in Chicago have subprime credit and don’t really know it until they go to purchase a used car. Ideally yes you want to talk the overall price of the used car but when you have subprime credit you want to talk more about the interest rate and try and knock it down from 12% to 8%-10%.
That’s where the car dealership getting you on an auto loan because they know you can’t pay the loan down.
We have helped thousands of car buyers get the best subprime auto loans they can, but it does take the time of shopping around for the car loan you can afford.
Watch out for what used car dealership will want to do there is some room for negotiating depending on the car and having subprime credit a used car is your best bet so hold tight to it.
Is buy here pay here car dealers good for you in Chicago
The last option no one really talks about is buy here pay here car dealerships in Chicago they will sell you a car on income and down payment, but you must pay biweekly for the car. The car dealership might sell you a car, but they don’t help your credit score so that’s something to think about when your buying a used car.
Making sure you have a reliable used car is the thing you want to have the most with subprime credit. You want to make payments on a car you can still drive bottom line.
Knowing that you have the breakdown of buying a used car in Chicago should help you for a subprime auto loan. A lot of people don’t know how subprime auto loans work and can get stuck with paying an interest that is sky high for a used car. That’s what you don’t want with any auto financing.