Bad Credit Auto Loans in Columbus (MS)

Lining up your financing ahead of time is an intelligent approach, as the benefits are significant:

  • A shorter time spent in the finance office.
  • Possibility of a less expensive interest rate.
  • Superior negotiating power.

We give you the ability to submit your application via our secure platform. We place your application with a financing professional whose primary objective it is to get you approved for the car you want.

New and Used Vehicle Loans in Columbus

You can get approved for a new or used car in Columbus, but which is best? What follows is an overview of the cost to finance a vehicle that is new as compared to 1, 2, or 3 years old.

New Car 1 Year Old Car 2 Year Old Car 3 Year Old Car
Price $19,360 $14,520 $11,616 $9,680
Owed Upfront $3,872 $1,452 $1,162 $968
APR 5.00% 7.50% 7.50% 7.50%
Duration 5 years 4 years 4 years 4 years
Monthly Installment $292.28 $315.97 $252.78 $210.65
Interest $2,049 $2,099 $1,679 $1,399
Total Cost $21,409 $16,619 $13,295 $11,079

In the end, though, it may be easier to get approved for a new car with bad credit.

Columbus Bad Credit Car Loans

Credit score is critical when trying to finance a car not just in Columbus, but everywhere. Has yours suffered in recent years? Although subprime credit might make it harder to buy a new or used car, it is by no means out of the question. We can help. At Mississippi Auto Finance, we specialize in serving people who have credit problems of all kinds, getting them the loans they need.

Auto loans can indeed help your credit ratings. But obviously, you will need to make each payment by the due date.

Make sure not to miss a payment, as it can bring down your score dramatically. Determining the ideal payment amount is crucial. As one example, let’s pretend you have an income of $1,936 per month, the average for Columbus residents.

  • Low Payment: $97 (5%)
  • Intermediate Payment: $155 (8%)
  • Maximum Payment: $194 (10%)

Columbus Buy Here Pay Here Car Lots

Considering heading to a buy here pay here dealer to get approved? Normally, there are more attractive options. These types of dealerships grant financing on site, in contrast to traditional dealers which farm this out to separate lenders, and they regard your income as a form of credit. Sadly, you can expect exorbitant loan rates, high down payments, and older vehicles that are steeply-priced. If elevating your credit score is important to you, and why wouldn’t it be, you are better off applying through us, as buy here pay here dealerships can’t help you strengthen your credit.

Loan Amounts for Columbus Residents

Have a look at just how much you’ll be qualified to finance given various credit scores. Have a look at these amounts for the average Columbus resident who has a monthly income of $1,936.

Credit History Multiplier Sum
Great Credit 10 $19,360
Fair Credit 9 $17,424
Slow Credit 8 $15,488
Bad Credit 7 $13,552
Very Bad Credit 6 $11,616

Truth be told, though, it’s advisable to finance a smaller loan than you really can. In the end, the recommended auto loan incorporates a down payment of 20%, car payment of less than 10% of monthly income, and a repayment term of 60 months or less. Provided an income of $1,936 a month, let’s look at how much car you could buy based on your credit.

Excellent Credit Okay Credit Poor Credit
Monthly Income $1,936 $1,936 $1,936
Car Payment $155 $155 $155
Interest Rate 3.50% 7.00% 11.00%
Sticker Price $10,642 $9,777 $8,904
Money Down $2,128 $1,955 $1,781
Total Interest $779 $1,471 $2,169
Total Investment $11,421 $11,248 $11,074