Bad Credit Auto Loans in Pontiac (MI)

Pontiac has a long and storied history in the automotive world, and we’re proud to help its residents buy the cars they need at rates they can afford. How would you like to arrange your financing before heading off to the dealership? You’ve come to the right place. Each and every bank, credit union, and finance company has their own approval standards, so it’s very important to find one willing to work with your credit. Here is how our process works:

  1. Apply for your Pontiac car loan through our website.
  2. Log in to your new account to check your placement status.
  3. Have a discussion with your dealer rep about your APR and conditions.
  4. Make an appointment to sign your agreement, then buy the car you want from a dealer in the area.

This proven 4-step process has helped countless consumers in Pontiac and Oakland County get the car they need, even with bad credit. Apply Now!

Bad Credit Dealerships in Pontiac, MI

Pontiac MIMany people with credit problems think they have to resort to a buy here pay here car lot to get approved. Rarely is that the case. Yes, those lots don’t sell cars with “no credit check,” but they charge outrage0us rates and down payments on the high-mileage vehicles in their inventory. If you’ve got a credit score of 620 or lower, bad credit is rarely a deal-breaker through a dealership with a special finance department – just the kind of dealer we can match you with when you submit your application. These dealers have relationships with auto lenders that specialize in subprime auto lending, meaning they can get you financed despite credit problems.

Of course, low credit scores do result in more costly interest rates, meaning it’s crucial for you to choose a cost-effective vehicle with affordable payments. Making all those payments on time is a proven way to improve your score and show lenders that you are “back in the saddle” as far as credit goes. Let us get you approved for financing by a bad credit car dealer in Pontiac – today!

Financing Pre-Approval: How Much?

Estimating how much you can borrow is pretty easy. Simply multiply your monthly income by the income factor associated with your credit score. We’ve included an example, based on Pontiac’s average per capita income: $1,925.

Credit Income Factor Amount Borrowed
Excellent Credit 10 $19,250
Decent Credit 9 $17,325
Temporary Bad Credit 8 $15,400
Poor Credit 7 $13,475
Very Bad Credit 6 $13,475

To determine your own loan amount, multiply your monthly income by the applicable income factor.

No Down Payment?

Down payments can be made in cash or via trade-in, and typically cover anything from 5-20% of the vehicle’s sticker price. They are sometimes required of borrowers who have a substandard history of debt repayment. That’s because lenders are worried about the Loan-to-Value Ratio, also known as the LTV. Divide the amount you borrow by the wholesale value of the vehicle. This is the LTV.

Amount Borrowed Vehicle Value LTV
$7500 $10,000 75%
$10,000 $15,000 67%
$15,000 $17,500 86%
$20,000 $30,000 67%

Bad credit dealerships in Pontiac and across the nation try to keep the LTV relatively low, typically staying in the range of around 70%. That said, we get quite a few applicants an approval anyway.

Apply online. We’ll work hard to match you with a lender or dealer who can offer you a loan, no down payment needed.

How About In-House Financing in Pontiac?

Buy here pay here financing is also known as:

  • Your Job is Your Credit
  • Tote The Note
  • Rent to Own
  • We Finance

As we discussed above, consumers who cannot secure financing due to seriously bad credit often wind up at dealers like these. Sure, the annual percentage rates are inflated, as are the down payments, but there aren’t many roadblocks to getting approved. Still, we can’t recommend that you go to one of these places. Too many consumers end up in a worse position financially after buying a car off one of these lots.

Credit and Income: Pontiac

Though important, your credit score is just part of the equation. Loan companies consider the following:

  • Income
  • Source of Income
  • Credit History

Listed below are average stats for residents of Pontiac.

  • Average Earnings: $23,097 Per Year
  • Average Car Payment: $212 (11% of Income)
  • Recommended Monthly Payment: $154 to $193 (8%-10% of Income)

If you have poor credit, you’re not alone. This chart depicts how many people in Pontiac are in each credit tier.

FICO Score % of Population Residents
300-499 2% 1,321
500-549 5% 3,301
550-599 8% 5,282
600-649 12% 7,923
650-699 15% 9,904
700-749 18% 11,885
750-799 27% 17,827
800-850 13% 8,584