Bad Credit Auto Loans in Vicksburg (MS)

If you’d like to finance a car in Vicksburg, rest assured we can help. Instead of waiting until you are in a high-pressure situation at the dealership, we enable you to apply for financing in advance. We place your application with a financing specialist who’ll assist you each step of the way.

New and Used Vehicles Financed in Vicksburg

Most car-shoppers choose to buy a new car as opposed to a pre-owned one because of fewer maintenance headaches and, in some cases, lower monthly payments. But the truth is, there are drawbacks too.

  • Instant depreciation.
  • Bigger upfront investment.
  • Bigger down payments recommended.
  • Increased chance of negative equity.

In the end, though, automakers want to move vehicles off the lot, and you can often score an outstanding deal through the automaker’s in-house finance department, even if you have poor credit. Sometimes people dismiss used autos for having less affordable rates of interest, but remember that they still don’t cost as much in upfront cash and in the long run. A great many lenders, however, will only finance cars from actual dealerships, not from private sellers. Below, we have put together some numbers to help you determine if you ought to purchase a vehicle that’s new or used. We’re assuming a two year old vehicle that has lost one half of its value, and a borrower with a credit score of 690 to 720.

New Car Used Car
Price $14,200 $7,100
Down Payment $2,840 $710
APR 5.00% 7.50%
Months 60 48
Monthly Payment $214.38 $154.50
Finance Fees $1,503 $1,026
Total Paid $15,703 $8,126

Buying a Car with Bad Credit in Vicksburg

For those who have subprime credit, a bank-financed loan usually isn’t an option. While poor credit might make it tougher to buy a new or used car, you’ve got a number of options. Through us, you can contact a vehicle lending expert from a lender or dealer in your area who is ready to approve you for financing. Auto loans can without a doubt improve your credit rating. That is, when you make each payment on time.

Having said that, a single missed payment can decrease your score significantly. Settling on an appropriate payment amount is very important. As an example, let us suppose you earn $1,420 per month, the average for Vicksburg residents.

  • Low Payment: $71 (5%)
  • Intermediate Payment: $114 (8%)
  • Max Payment: $142 (10%)

Vicksburg Buy Here Pay Here Dealerships

People in the BHPH industry would like you to think that you don’t have any option but them, but this usually isn’t the way it is. These dealers will finance practically anybody, no matter their credit, but there are disadvantages. Negatives include:

  • Inflated Interest rates
  • Outrageous Down Payments
  • Steeply-Priced Cars and Trucks
  • Ignition Kill-Switches

Even worse, these dealerships rarely report to the credit reporting agencies, so you could make every single payment on a monthly basis with no lift in your credit score.

Vicksburg Income and Finances

  • Per-Year Income: $17,037
  • Income Per Month: $1,420
  • Average Car Payment: $156
  • Ideal Car Payment: $71 to $142 (5-10% of monthly income)

Car Loan Budgeting for Vicksburg Residents

Here we have a table revealing what car you can afford with a payment of $114, 20% down payment, and 5-year term.

Good Credit Fair Credit Poor Credit
Monthly Payment $114 $114 $114
Loan Rate 3.50% 7.00% 11.00%
Months 60 60 60
Car Price $7,806 $7,171 $6,531
Down Payment $1,561 $1,434 $1,306
Loan $6,245 $5,737 $5,225
Total Interest $571 $1,079 $1,591
Price with Interest $8,377 $8,250 $8,122