Highline Automotive Offers No Money Down Auto Financing in Philadelphia
Buying a used car is a wonderful experience, and can offer consumers a lot of really great affordable choices. However, before you get ready to buy a used car you need to be aware of certain aspects of the purchasing process. At Highline Automotive, our friendly sales and finance staffs are happy to walk you through the entire process, but we've also compiled a list of things for you to reference here too.
Are you operating under the assumption that you need good credit or even a sizable amount of cash on hand to purchase a used car? We've got great news, today, you can get an auto loan with bad or even no credit. Plus, it is possible for you to put little to no cash down when making your purchase. Let's take a look at some of the factors that will affect your monthly payments:
- Down Payment
- Financed Amount
- Loan Term
- Interest Rate
While you can opt to purchase a car for a small or even no down payment, this choice will make your monthly payments greater. The more money you can put down initially for your car, the less you will have to pay every month. Also, the amount of money you put up initially as a down payment will affect your interest rate too. The more money you have to borrow, in other words, the higher your interest rate will be. Check out our free payment calculator tool to see what your monthly payments would be under different conditions. Financial experts advise that an individual's car loan payments should be no more than 15 percent of their total monthly income. This is a good baseline to keep in mind while determining what you can afford in terms of car payments every month.
Credit Score and Its Affect on Your Loan Rate
Credit scores typically range from 350 to 850. The higher your credit score, the better your credit is. It is easier to secure low interest rate loans with a higher credit score because lenders are more confident in your ability to pay back the amount of your debt. Every lender develops their own loan practices so while one lender may extend you credit another may not. Credit scores over 700 are regarded in most circles as good. Everything below 700 is categorized in the following way:
- Non-Prime 601-700
- Sub-Prime 501-600
- Deep Sub-Prime everything below 500
As we said before, each lender is going to have their own best practices and loan standards. Having a good credit score means that you will get better interest rates. For people that have scores below 700, here is a rough outline of the rates you can expect when securing a loan:
- Non-Prime around 9%
- Sub-Prime around 15%
- Deep Sub-Prime around 21%
Highline Automotive Has Fair Financing in Philadelphia
You aren't stuck with your credit score! You can always work on improving your credit score, and sometimes buying a used car on credit can help you improve your score if you make your payments on time. Regardless of where your credit is at, at Highline Automotive our friendly finance staff is here to ensure that all of our customers get the most competitive loan rates possible. Our sales and finance teams can also work in tandem to help you find the perfect car for all of your needs while keeping the monthly payments and total costs within your budget. If you need a car fast, you can still get a used car with little to no down payment! Apply for financing here and let's get the process started.