How Much Bad Credit Car Loan Can I Afford?
This is one of the first questions you must ask yourself if you are thinking about buying a used car in Greenville and have a bad credit score. Sure, it feels great to explore car options first and even take a few for test drives but financing and affordability are where it all comes down to as cars are not exactly cheap commodities. The bad credit loan you take will run for years. Any default will further plummet your credit score and you will end up losing your car. Naturally, the best way to buy used cars is to answer how much auto loan can you afford right now and then visit used car dealerships in Greenville, SC.
Start with your current monthly pay check
This is how a buy here pay here no credit check in Greenville, SC calculates the amount of auto loan it can approve for you. And this is where you must start. For a detailed calculation,
• Pull out your credit report from a paid service
• Take note of the premium payments on all your existing debts and insurances
• Factor in your average monthly expenses
• Consider how much savings you have to date
Now, subtract all your expenses from the income and see how much extra money you are likely to end up with every month. Your auto loan monthly premium should be 50-80% of this amount. Multiply this with 36 and you should end up with the net loan expense you can afford now.
Think about down payment
You must always try to pay as much down as possible when buying used cars with a bad credit score. But there is no hard and fast rule as to the specific amount you should pay. Some dealerships may ask for 30% of the net car’s price. Some may settle for 10. But the best dealer like Family Auto will give you the flexible down payment deal where you can pay anything that you can afford.
If you indeed cannot afford much, then search for a buy here pay here in Greenville with $500 down options. There are ways in which you can buy a used car with just $500 down . If you can go higher, pay by all means and add this figure to the loan amount you calculated above. This will give you the net price of the used car that you can afford to buy.
Do not forget about insurance and taxes
Before you start rejoicing the number you just wrote down, remember that this amount should include the insurance, tax, and registration payments. Auto loans do not cover these expenses and the amounts depend on the price of the vehicle that you buy from used car dealerships in Greenville, SC.
Fire up any third-party site and calculate the average tax and insurance payments of the model you are thinking of buying. Subtract that from the upfront payment or the net car’s price you just calculated and this is the overall cost you can afford. Revisit the loan amount now and factor in interest payments. The new amount is the estimate that you want to have in mind.
Why not visit Family Auto instead?
If all these seemed too complicated for you, or if you just want to bypass all the hassles of doing the calculations yourself, visit Family Auto buy here pay here no credit check in Greenville, SC. We will do the math for you and offer a bad credit loan that you can afford. It is really easy to get financed at Family Auto . Our inventory of used cars is also abundant that give you choices. Finance with the best bad credit deals and drive home a used car with a comprehensive 2 years/36,000 miles warranty.
The information provided on this website is for general informational purposes only. It is not intended to be legal, financial, or professional advice. The content on this site is based on our understanding of current laws, regulations, and practices as of the date of publication. We make no representations or warranties of any kind, express or implied, about the accuracy, reliability, suitability, or availability of the information contained on this website.
Visitors are encouraged to seek professional advice from qualified professionals regarding their specific situations. Any reliance you place on the information provided on this website is strictly at your own risk. We do not assume any responsibility or liability for any loss or damage incurred as a result of the use of this website or reliance on the information provided herein.
Furthermore, this website may contain links to external websites that are not under our control. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, we take no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
Please consult with qualified professionals and carefully review all terms and conditions before making any financial or legal decisions. We recommend conducting thorough research and seeking personalized advice to ensure that any actions you take are suitable for your individual circumstances.