Bad Credit Auto Loans in Ann Arbor (MI)

Trying to find the best car loan in Ann Arbor? You’ve come to the right place. We have a vast network of dealers and lenders who are standing by, ready to approve you for financing. Simply submit your application, and we’ll start working to get you approved from a lender or dealer who suits your needs.

auto loan Ann ArborSpecial Finance is our principal focus. In fact, we have dealers and lenders in our network who work with people of each different credit tier. Many loan providers do require applicants with credit problems to provide a down payment. Fortunately, people who apply through us get approved within minutes. If you have below-average credit, you’ll typically be matched with a lender or dealer in Ann Arbor that finances bad credit. These companies submit payment information to the credit bureaus. This is crucial to rebuilding your credit.

Auto Loans for Students of U-M

We receive many inquiries from students who are afraid that their lack of credit history will deter lenders. This can be a challenge, but this exactly the type of financing scenario in which we specialize. Many of the subprime lenders and bad credit car dealers in our Ann Arbor network can and do provide auto loans to students with limited credit histories. That said, it will make for a much more streamlined experience if you can meet the following criteria:

  • Income of $1500 per month.
  • No more than 35% of credit card limit utilized.
  • Relative with credit score of 700+ to co-sign the loan.

Pre-Approved Auto Loan Amounts

Loan creditors decide how much to lend you based on your income and credit score. The following table displays the maximum loan amount for people of a variety of credit ratings, based on an income of $2,167 a month, which is the average for Ann Arbor residents. Remember, these are only estimations.

Credit Score Income Factor Loan Amount
Excellent Credit 10 $21,670
Average Credit 9 $19,503
Temporary Bad Credit 8 $17,336
Bad Credit 7 $15,169
Horrible Credit 6 $15,169

Of course, these are simply estimates. For a precise quote, you must submit your application.

Excellent credit? If so, you might not have to offer up a down payment. However, it’s considerably trickier for people with below-average credit. That is because such loans pose a much greater risk to the lending company. Failure to pay is more common, and a down payment helps to ensure that at least a percentage of the vehicle’s value is not at stake. With that being said, we get many loan-seekers an approval anyway.

The majority of buy here pay here dealerships do require a down payment, often a significant one. Shoppers who have been unable to secure a loan due to serious credit problems often wind up at dealerships like these. They approve people with problems like bankruptcy or repossession on their records.

Ann Arbor Consumer Profile

There’s more to the approval process than just your FICO score. Loan companies consider the following:

  • Ability
  • Source of Income
  • Payment History

Listed below are some average stats for Ann Arbor residents.

  • Average Salary: $26,000 Annually
  • Average Monthly Payment: $238 (11% of Income)
  • Suggested Monthly Payment: $173 to $217 (8%-10% of Income)

If you have a low credit score, you’re not the only one. This table depicts how many people in Ann Arbor are in each credit level.

FICO Score % of Population Residents
300-499 2% 3,039
500-549 5% 7,597
550-599 8% 12,154
600-649 12% 18,232
650-699 15% 22,790
700-749 18% 27,348
750-799 27% 41,021
800-850 13% 19,751

We also provide services in Flint and Detroit, as well as the rest of the state.