Bad Credit Auto Loans in Madison (MS)

Increasingly, consumers in Madison are arranging their financing before visiting the dealer lot, as the benefits are significant:

  • A shorter time on the dealer lot.
  • Potential for a less expensive APR.
  • Better negotiating leverage.

We enable you to apply for financing through our 50-state network of dealers and lenders. Let us match you with a financing specialist who can help you obtain the car loan required for the car you desire.

Madison Auto Finance Rates

You probably want to know high or low your interest rate will be. Do you know your credit score? This is the most important factor. Below we’ve provided some interest rate estimations for Madison.

Credit New APR Preowned APR
Stellar Credit 3.7% 4.1%
Average Credit 5.1% 5.6%
Slow Credit 7.2% 7.7%
Poor Credit 12% 11.5%
Very Bad Credit 19.1% 20.2%

These are not offered rates, just approximations. It’s impossible to estimate your interest rate without more information. Just submit your application, so you can learn what interest rates Madison lenders and dealers can offer you.

Auto Loans for Preowned Cars in Madison

Used autos have got some important advantages:

  • Smaller loans required.
  • Lower down payment requirements.
  • Flatter rate of depreciation.

The interest rates for preowned cars and trucks are a bit higher, but this cost is made up for in lower sticker prices and rates of depreciation. Maintenance concerns can be assuaged by selecting a vehicle that is still under warranty or obtaining an aftermarket service contract. Take a look at this comparison of new and used auto loans in Madison, Mississippi. We are assuming a two year old vehicle that has lost 50% of its value, and a borrower with a credit score of 690 to 720.

New Car Used Car
Price $30,810 $15,405
Down Payment $6,162 $1,541
Interest Rate 5.00% 7.50%
Duration 60 months 48 months
Monthly Payment $465.14 $335.23
Interest Paid $3,260 $2,226
Total Paid $34,070 $17,631

Buying a Car with Bad Credit in Madison

Most lenders judge your credit based on a credit score tailored for the automobile industry. This score is weighted by your prior experience with auto loans or leases. Seeking out a lender in Madison that finances bad credit is extremely important, or you could be declined or face an inflated APR rate. We can help. At Mississippi Auto Finance, we serve consumers with credit problems of all kinds, getting them the loans they need.

Dealers in Madison That Accept Bad Credit

At a bad credit dealership, your dealer will want to discuss financing right from the start. If you apply through us, you can usually hammer out the important points of your finance contract in advance, then set up an appointment to select your vehicle and finalize any remaining paperwork. Make sure that your auto loan payment is not more than 10% of your income. For a person with the Madison average of $3,081 of income each month, this would be $308. Calculating this based on your own income is pretty simple. Simply divide your monthly income by 10 for your own maximum payment.

Buy Here Pay Here Car Lots in Madison, Mississippi

The buy here pay here industry has expanded in recent years, mainly because so many consumers’ credit ratings suffered on account of the economy. Generally, dealer finance is sourced elsewhere, as dealers work with banks or credit unions to provide the loans, but BHPH dealers handle everything on site. They make credit decisions on site, usually without a credit check.

Alas, you will be faced with excessive loan rates, big down payments, and high mileage vehicles that are overpriced. Is raising your credit one of your goals? If so, you are better off applying through us, as BHPH dealerships won’t help you raise your credit.

Madison Consumer Profile

  • Income Per Year: $36,969
  • Monthly Income: $3,081
  • Recommended Monthly Payment: $246 (8% of monthly income)

Overall, the recommended auto loan involves the following: down payment of 20%, car payment of 5-8% of monthly income, and term length of 5 years or less. Given an income of $3,081 each month, let’s look at how much car you could buy based upon your credit.

Great Credit Fair Credit Subprime Credit
Monthly Payment $246 $246 $246
Rate 3.50% 7.00% 11.00%
Purchase Price $16,936 $15,560 $14,170
Down Payment $3,387 $3,112 $2,834
Total Interest $1,240 $2,341 $3,452
Total Investment $18,176 $17,901 $17,623

Contact a Vehicle Finance Professional Near You!

We’re your trusted source when it comes to financing a car in Madison. We will connect you with a dealer or lender located in Madison.