How to Finance a Car WITHOUT Perfect Credit!

Imagine, you get to the dealership and you test drive your dream car. You feel the steering wheel, smell the clean leather. It is perfect. You sit with the sales associate and begin to discuss a finance option, then the sales associate says those two words…”credit score”.

Financing a new and/or pre-owned vehicle is an exciting time in one’s life, however many dread the feared credit check. At Clint Newell we carry a large inventory of new Toyota models as well as a variety of Toyota and non-Toyota pre-owned cars, trucks, and SUVs. Although it may seem impossible to receive an auto loan with low credit, the good news is- it IS possible. We understand “perfect” credit is unrealistic for many of our customers, and are here to help. Our team has put together some tips and tricks on financing a vehicle with less than perfect credit. Don’t let some numbers stand between you and your dream vehicle!

Your credit score is a representation of your spending and paying- back within your credit history. It will be a number between 300-850, found within your credit report. Through your 3-digit score lenders may see spending trends and habits in a period in time. To a business such as a car dealership, it determines the likelihood you will pay back the money you’ll be borrowing through financing and loans. 

Your credit score reflects your history of:

• On-time payments
• Amount of credit available to you
• The amount of credit you are using
• The amount of inquiries from about your credit from other lenders
• How long you have had your credit 
• Any derogatory actions or information regarding your credit 

Not only is your credit  the tool lenders use to determine approval or denial of an auto loan, but it also sets the terms and regulations of said given loan. 

Terms and regulations of auto loans:

• The amount of money lended to you
• Interest rate charged
• Required down payment
• Length of the offered loan

As the economy changes, the overall lengths of many auto loans continue to expand. However, the lower your credit, the shorter the length of your loan may be. Oftentimes banks and lenders charge consumers with lower credit and a higher interest rate. How can this be, you may ask? Lenders may see someone with a lower credit score as a higher risk to pay borrowed money back. At Clint Newell Toyota, our skilled associates and accountants are dedicated to assisting you in every step of your car-buying process. Finance options through our Roseburg dealership will be discussed further in the article, or can be found here.  

It is extremely important before applying for the auto loan on your dream Toyota Camry or Tacoma, to get a free copy of your credit reports and scores. By doing so, you’ll be able to determine the quality of your credit as well as payment history and dispute errors if needed.

The best way to improve payment history patterns is to make sure you meet your monthly credit payments. Taking actions such as setting alarms or email reminders can help you remember on-time payments. If possible, we encourage you to use the autopay option to ensure you don’t miss deadlines or bills. Reducing the balance of debt on your credit card  is vital. A mistake 

Many people make only the minimum required monthly payments. While that IS indeed better than paying nothing whenever possible, you should pay more than required to make a dent. By doing this it will reduce the amounts owed on your credit score as well. Overall, the greatest factor lenders consider is your debt to income ratio. This is the total amount of your obligations in comparison to the money servicing the debt.

Here at Clint Newell Toyota, we happily offer easy loan and finance options. We can get your pre-approval in minutes.  Fill out an application online and we will contact you with a financing decision quickly.  Enjoy fast easy financing with Clint Newell Toyota.  We offer the best rates in the Roseburg, OR area.