Bad Credit Auto Loans in Meridian (MS)

A few years back, you would have to lender after lender, applying for loans by hand. At Mississippi Auto Finance, we have simplified the process. We make it easy to submit your application via our secure platform. Generally, we can position our clients with a willing lender or dealer even if their credit has been compromised by bankruptcy or repossession.

New Vehicle Financing in Meridian

Meridian-MSThere are advantages to new cars:

  • Less expensive annual percentage rates.
  • More discounts available.
  • Minimized repair costs.
  • Extended financing to choose from.

On the other hand, there are disadvantages too.

  • Extreme loss of value.
  • More expensive in the long run.
  • Bigger down payments needed.
  • Negative equity is a more significant risk.

Given that new cars are less vulnerable to service problems, however, many lending companies are more inclined to finance them for consumers who have credit problems.

Used Car Financing in Meridian

To minimize negative equity, you should get a loan for a preowned car. Some individuals disregard used vehicles for having increased rates, but keep in mind that they cost less at signing and in the long run. If you’re anxious about repairs and maintenance, you can opt for a vehicle that has low miles and great ratings in terms of dependability. Below, we have assembled some numbers that may help you determine whether you should get a vehicle that’s new or used. These estimates are based on these assumptions:

  • New car costs $11,010.
  • 50% depreciation in first 36 months of ownership.
  • Good credit score.
  • Simple Interest.
New Car Used Car
Price $11,010 $5,505
Down Payment $2,202 $551
Interest Rate 5.00% 7.50%
Duration 60 months 48 months
Monthly Payment $166.22 $119.79
Interest Paid $1,165 $796
Total Paid $12,175 $6,301

Buying a Car with Bad Credit in Meridian

Maybe you have a bad credit score on account of overdue debts, job loss, divorce, or even bankruptcy? Finding a lender in Meridian that works with bad credit is a must, or you could be turned down or deal with an outrageous APR rate. We have the solution. We serve people with credit problems of all kinds, getting them the loans they need. Keep this in mind: a car loan, if paid as agreed, can raise your credit score by leaps and bounds. In an effort to eliminate missed payments, most banking and lending institutions make it easy to automate your payments. You shouldn’t strain your finances with an excessive car payment. Typically 5-8% of your monthly income is reasonable, or $55 to $88 if you bring in $1,101, the average in Meridian.

Meridian Buy Here Pay Here Financing

Buy here pay here car dealers usually finance people who have truly serious credit problems like:

  • Filing bankruptcy
  • Auto Repossession
  • Debt Settlement

Nearly all dealer finance is outsourced, as dealers go through various lenders to provide the loans, but BHPH dealers determine who gets financed on the lot, generally without any credit check. Disadvantages include:

  • Ridiculous APR Rates
  • Exorbitant Down Payments
  • Overpriced Autos
  • Ignition Kill-Switches

If that weren’t a problem, these car lots very rarely work with the credit bureaus, so you could make every single payment on a monthly basis without reviving your credit score.

Meridian Consumer Profile

  • Income Per Annum: $13,215
  • Monthly Income: $1,101
  • Average Car Payment: $121
  • Optimal Car Payment: $88 (8% of monthly income)

The exact amount you ought to put into a car depends on a number of variables. These estimates derive from a monthly payment of $88, which is 8% of the average consumer’s monthly income in Meridian, coupled with a 20% down payment and 5-year repayment terms. Rates of interest are approximate.

Good Credit Okay Credit Poor Credit
Monthly Income $1,101 $1,101 $1,101
Car Payment $88 $88 $88
APR 3.50% 7.00% 11.00%
Months 60 60 60
Car Price $6,052 $5,560 $5,064
Down Payment $1,210 $1,112 $1,013
Total Interest $443 $837 $1,234
Price with Interest $6,495 $6,397 $6,298

Car Dealers in Meridian

Here are a couple of the leading dealers in Meridian.

Dealer Address Zip Code
New South Ford Nissan 1200 N Frontage Rd 39301
New South Ford 1200 North Frontage Road 39301