Bad Credit Auto Loans in Greenwood (MS)

Financing a car is a choice you have to live with for many years down the line, but if you are clever in how you tackle the financing part of the equation, you can save a bundle in the long run. We have access to an extensive network of dealers and lenders, which means we can help applicants get pre-approved for a car loan, even if their credit isn’t the best. We place your application with a financing professional who will work tirelessly to get you financed.

New Car Financing in Greenwood

Most car-shoppers opt to purchase a new car rather than a used one because of how much easier it is and, in many cases, lower monthly payments due to lengthier, 5-6 year financing options.

But bear in mind, there are downsides you should keep in mind.

  • Sharp drop in value.
  • Costs more over the years.
  • Larger down payments required.
  • Negative equity is more of a risk.

More often than not, new vehicles are best for buyers who have a good credit rating, as the interest rates can be incredibly affordable.

Financing a Used Vehicle in Greenwood

In today’s times, automobiles are so well-built that a preowned vehicle is seldom a problem. As they have gone through that immediate depreciation, preowned vehicles call for less costly down payments, often just 10% rather than the 20% typical of new cars. Remember, though, that there are limits on the condition of the vehicle. These vary among lenders, but typical requirements are listed below:

  • Miles: at most 70,000 to 100,000 miles.
  • Year of Production: less than 7 years old.
  • Non-commercial vehicles only.

All in all, a preowned vehicle will offer more value for your money.

Buying a Car with Bad Credit in Greenwood

Regular financial institutions like banks and credit unions ordinarily only finance people who have very solid credit scores. That is, scores of 700 or higher. No one likes to deal with having a new line of credit rejected, so it’s important to contact a company in Greenwood that accepts bad credit. When you apply online through Mississippi Auto Finance, our team works to match you with a dealer or lender in our network who wants to fund your loan.

An auto loan can actually help you in restoring your credit ratings. Just make certain you make each payment by the due date. As a way to eliminate missed payments, a lot of lenders enable you to automate your payments. Determining the right payment amount is crucial. As one example, let’s say you make $912 per month, the average for Greenwood residents.

  • 5% of Income: $46 (Ideal)
  • 8% of Income: $73 (Okay)
  • 10% of Income: $91 (Maximum)

Buy Here Pay Here Dealers in Greenwood, MS

Buy here pay here dealers primarily do business with people with acute credit problems like:

  • Chapters 7 or 13
  • Auto Repossession
  • Judgments

Nearly all dealer financing isn’t direct to the consumer, in that dealerships work with a network of lenders to provide the loans, but BHPH dealers provide auto loans independently.

More often than not, higher-mileage vehicles are the only thing available, and these aren’t zero down cars. Quite often, the down payment is almost the same as what you would pay for the vehicle on the private market, and interest rates of up to 20% APR are common. Because of this, these dealers don’t have a great reputation. We want to connect you with subprime finance specialist who can get you behind the wheel of an excellent car, regardless of your credit.

Greenwood Consumer Profile

  • Per-Year Income: $10,939
  • Income Per Month: $912
  • Recommended Monthly Payment: $46 to $91 (5-10% of monthly income)

Take a look at this table, which shows what price car you can finance given your credit standing, given an income of $912 on a monthly basis, 60 month loan, and 20% down.

Excellent Credit Okay Credit Bad Credit
Monthly Income $912 $912 $912
Payment Amount $73 $73 $73
Loan Rate 3.50% 7.00% 11.00%
Vehicle Price $5,013 $4,606 $4,195
Money Down $1,003 $921 $839
Note Size $4,011 $3,685 $3,356
Interest Paid $367 $693 $1,022
Price with Interest $5,380 $5,299 $5,217

Contact a Finance Specialist Today

We are your trusted source for auto loans in Greenwood. A finance manager will guide you through the process, helping you get approved at a competitive rate of interest.