Approximately 494,275 individuals live in Birmingham, AL, and on a daily basis, approximately 95% of them commute to the workplace regularly by car, either by themselves or as part of a carpool. To do this, you need to have a car, and for 75% of the population, that means applying for an auto loan.
However, getting a car loan is no walk in the park, not anymore.
The good thing is that we have teamed with a varied circle of Alabama auto loan lenders to let you submit an application for financing on the web. If you decide to head over to one car finance company at a time, it might require several weeks to come up with the Birmingham, Alabama car loan you’re looking for, especially when you suffer from credit-related challenges such as:
- Bankruptcy Proceeding
- Property Foreclosures
- Past Loan Delinquency
- Past due Bills
At MyCarLender.com, however, you’re able to locate financing for your car or truck within a few hours.
Follow this link to apply online.
What Amount Can I Afford?
Did you know that the average income in Alabama is $37,492, while in Birmingham it’s $17,484? Most loan companies advise that you dedicate a maximum of 36 percent of your monthly debt payment, which averages out to $214. If we take away $66 for Alabama’s per month insurance costs, we’ll be left with $148. Just what payments factor into this equation?
- Mortgage/Rent Payments
- Credit Card Statements
- Car Loans
The total amount this represents will depend on a lot of factors: interest rate, length of term, credit score, and more. Fortunately, we are able to supply you with various estimates based on 60 month new car loans in Birmingham, Alabama. If you are going to get a used car, the annual percentage rates and thus the payments will most likely be somewhat more costly. The larger number is referring to car loans with bad credit, and the more inexpensive figure refers to auto loans with good credit.
- $5000: $100 to $130
- $12,500: $230 to $325
- $15,000: $275 to $400
- $20,000: $375 to $525
- $30,000: $550 to $775
If you’d prefer to owe less per month, you could get a 6 year loan or even longer. Also, keep in mind that putting money down should lower the amount you need to borrow.
Purchasing a Car When You Have A Low Credit Score in Birmingham, AL
Have a bad credit score and need a car loan in Birmingham, AL? In Alabama, the average credit score is 676, but 148,283 people who live in Birmingham are struggling with low credit ratings, which is 30%!
Why is it so tough to get a car loan with poor credit? Loan providers look at your credit rating as way to analyze financial risk. Granting you a car loan is an investment. The more risk there is of you not paying off the loan amount, the more likely they are to lose money on this particular deal.
There are 2 key hurdles that everyone who needs to finance a car or truck with a bad credit score has to cross.
- Get Your Credit Approved
- Get an Affordable Annual Percentage Rate
We we help you with both of these. Anytime you apply online, we not only attempt to connect you to a finance company eager to accept your application, but we also offer you the knowledge you need to determine what rate your credit merits. This is crucial; potential buyers who don’t know any better can be misled into overpaying. The process is swift, easy, and free. Click the link to Get Started!
Auto Loan Approval For Birmingham Loan Candidates
Listed below are some suggestions to help you get an auto loan that won’t break your budget.
- Purchase a Realistic Vehicle: Choose a reasonably-priced automobile with superior fuel economy and dependability.
- Offer up a Down Payment: Providing a down payment of at least $500 to $1000 can help you steer clear of bad equity.
- Get a Co-signer: Getting somebody with a good credit rating to cosign your loan can cut your rate of interest substantially. For individuals with bad credit or no credit, car loan cosigners are particularly important.
Follow this link to apply online!
Do I Need a Down Payment?
It depends. You can get yourself an auto loan with zero down payment in Birmingham, AL. Unfortunately, these wind up being problematic.
The truth is, negative equity is a big problem for American debtors. Down payments are a straightforward means of avoiding the negative equity auto loan. When considering auto financing for individuals who have poor credit in Birmingham, AL, you might have no choice but to provide a payment in advance.
Beware of Birmingham Buy Here Pay Here Lots
Have you noticed all the buy here pay here car lots springing up in Birmingham and across Alabama? This isn’t really a shocker. These car dealerships accommodate people who are need of:
- Auto Loans with Bankruptcy
- Auto Loans with Repossession
- Auto Loans with Foreclosure
Buy here pay here car lots, often called tote the note, we finance, or your job is your credit car lots, provide auto loans with no credit check in Birmingham, AL. But you’ve got to be careful. The interest levels can be inflated, and it is much too easy to become a victim of negative equity with this type of car loan. For those who need auto loans with less than a 550 credit score, no credit check financing may be the only solution. However, we have noticed that many people assume that their fico score is worse than it is. You may not need to have a no credit check auto loan.