Tag Archives: credit issues

The Benefits of No Credit Auto Loans

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One of the biggest problems that car buyers have are credit issues.  Maybe they fell behind on a payment because of a lost job or a sick family member, there are numerous ways to find a mark on a credit report.  There is, however, another issue with credit and that is some people don’t even have it.

This is typical with newer buyers, say students or newly weds, who are entering the world and discovering that weird catch twenty-two of needing credit get a loan but having no credit history.  Thankfully, there is a way around this.  The recent uptick in financing after the recession has caused dealerships to offer more deals for people, and that includes those with no credit.  It is entirely possible to apply for a no credit auto loan.

Now, the next question (and the right one to ask) is ‘what is the catch?’  Since the person asking for this loan doesn’t have any credit history to determine if they are good for the payments, the dealership is taking a much larger risk in issuing a loan to this individual.  For that reason, the dealership typically asks for a larger down payment on the car.  Another stipulation is that the fee for any late payments is larger.

For these reasons, when entering into a no credit auto loan, be sure to be aware of the deal and your own finances.  This loans can be a real blessing for people starting out and needing to build stronger credit as keeping up with the payments will help with gaining positive credit.  There are certainly risks, but for the responsible person, there’s genuine benefit.

Need an auto loan?  Contact a sales person at Bayside Chrysler Jeep Dodge.  We’ll work with you to find the perfect new or used car to fit your life-style.

Help for Getting an Auto-Loan While on Disability

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ID-10091618There are already enough hardships on people with bad credit looking to get an auto loan.  It’s even harder if you’re on benefits.

Why is that?  Well it’s because Social Security disability income cannot be garnished.

What does that mean exactly?  If you’re on disability income and should your vehicle get repossessed, then the lender is unable to garnish that income to pay off outstanding loan balances.  The lenders keep this very much in mind when someone on SSI disability wants to apply for an auto loan.

That isn’t the end for applicants on SSI disability, however.  High-risk lenders will still take you into consideration under the right conditions.

One example is if you’re able to prove income that can be garnished.  If you have another job and can prove income through a W-2 that helps a great deal.  The length of time you’ve been with the job can make a difference as well.

Something else to consider before applying helping your chances is to take a look at your residency.  If you’re able to prove long-term residence stability, it can help.  You also will want to look into showing your credit problems to be situational rather than habitual.  The difference is that situational will be a credit problem as a result of a single problem, such as a medical issue, while habitual is a history of being behind in payment to multiple lenders.

Getting an auto-loan when on disability is tricky.  It’s important, more-so than with most borrowers, to know how the system can be influenced in your favor.  Thankfully, it is possible with leg-work and proper knowledge.

If you need a hand in getting an auto loan, then contact us at Bayside Chrysler Jeep Dodge. We work every day with people that have poor credit situations and help them get the loan they need that suits their life-style.  We love to say yes! We’ll work with you to put you in the car best suited for you. Don’t forget to like and follow us on Facebook as well as Twitter.

Source: Auto Credit Express

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

The Cars That Sub-Prime Borrowers Are Buying

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Dodge AvengersQuick question: what cars are sub-prime borrowers buying? The answer may be surprising.

Carfinance.com wanted to know this very answer. Rather than following my example and randomly asking the internet, they put together data between October 2012 and March 2013. What the conclusion they found in that window of time was that the people who make their auto purchase as sub-prime borrowers are buying completely different cars than those in the top-selling slots.

The top three selling midsized sedans in the US is the Toyota Camry, Honda Accord, and the Nissan Altima. These three didn’t even break the top ten for sub-prime. So what was on the list then?

Topping it was the Dodge Avenger followed by the Kia Forte and Kia Optima in second and third respectfully. It’s clear from looking at the full list of the top ten that people suffering from credit issues and other financial complications are looking for small or midsized sedans. At least in the new category they are.

Used tells a different story. The top seller in that time period was the Ram 1500. The Dodge Charger came in at the fourth slot. A wide range of vehicles are on the list, but trucks were more numerous than on the new list.

Are you having credit issues and are looking to purchase a new or used vehicle, such as the Avenger or the 1500? Contact us at Bayside Chrysler Jeep Dodge. We love to say yes! We’ll work with you to put you in the car best suited for you. Don’t forget to like and follow us on Facebook as well as Twitter.