4 Tips on Improving Your Interest Rates in Buy Here Pay Here Dealerships
You may already know that the interest rate payable in a buy here pay here in Greenville will be higher than banks. But that does not mean it can be any figure above the bank’s figure and you cannot do anything to improve the interest rates. Fortunately, interest rates in reputed buy here pay here dealerships are calculated based on a formula and the variables used by the formula are under your control. You can improve the interest rate payable by following these invaluable tips and save a chunk of money from the bad credit used car financing.
1. Try to pay a high down payment
Interest rates are, after all, charged on the net amount you take as a loan and you can reduce the interest rates payable by paying a high down payment upfront. Note that the interest rate is not reducing here but you are tweaking the loan amount on which the percentage is calculated. It is as good as taking an auto loan with lower rates. A top buy here pay here in Greenville, SC will always prefer that you pay a high down. But even if you cannot, there have to be other options.
2. Trade-in your old car
Dealerships like Family Auto offer used car trade-ins. That is, you can sell your old car to the dealership and use the dollar value of the vehicle in the down payment of the next used car. The concept of improving your interest rates is similar here. You are increasing your down payment by trading your old car and not liquidating any of your savings. However, be cautious about which dealership you pick to trade your car. You will want transparent rates and Family Auto can assure that.
3. Limit your credit span
Credit span is directly related to the interest rates charged. The longer your loan drags, the riskier your credit becomes, and the higher the interest rates you pay. Long credit spans are excellent ways to reduce your monthly payments but they only increase your interest rates. Shorter ones may hike the monthly payments, but the rates are much controlled. Here again, Family Auto is a top name that offers 3-year bad credit loans. With these, your interest rates will hardly hurt your finances.
4. Consider your affordability
A top buy here pay here in Greenville will ask for your credit report. While your loan stands approved, your credit report will help the dealer determine the risk it is taking by financing you. If you already have a few loans on your report, you can reduce your interest rates by buying a more affordable car. If you take a loan that stretches your finances and you can just make the monthly payments, the dealer will have to charge an inflated interest rate to compensate for the added risk.
However, such tweaks are only possible at a dealership like Family Auto that has a massive inventory of quality used cars. Along with trade-ins and short credit spans, you will also want a variety of used car options in the budget that you have set yourself. Improving interest rates is alright but it cannot come at the cost of the quality of the used car. Family Auto not only gives you the chance of improving the interest rate payable but also offers quality assurance by providing a 2 years/36,000 miles warranty on any car you buy.
This is personal blog for Family Auto of Greenville. All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner is not be liable for any errors or omissions in this information nor for the availability of this information. The owner is not liable for any losses, injuries, or damages from the display or use of this information. Reader’s discretion is advised.