Bad Credit Auto Loans in Southfield (MI)

You need to get approved for financing, and we’re here to help. Every bank, dealer, and finance company has their own approval criteria, so it’s crucial to find one willing to approve your credit. Simply apply online, and we’ll work to get you the loan you need. You’ll be able guided each step of the way by a dedicated finance specialist whose top priority is getting you into the car you want at a rate you can afford.

Serving The Entire Credit Spectrum

Southfield, as a suburb of Detroit, has suffered many of the same economic travails as its parent city, which has translated into credit problems for many citizens. Below-average credit is often a challenge when trying to finance a car, but not when you submit an application through us. We have dealers and lenders who help people with subprime credit scores, and they would love to approve you for financing. There are a few extra requirements, however. A down payment, as well as income verification, will typically be considered necessary, and you won’t be able to borrow as much as you could if your credit was perfect. Of course, your interest rate will be inversely proportional to your credit score, as it is with any loan. Dealerships for people with bad credit in Southfield generally offer financing with rates of 8-24% APR.

Fortunately, our clients are often approved the same day they apply. You’ll typically have your application placed with a lender or dealer in Southfield that specializes in subprime credit. These companies will submit payment data to the credit agencies. This is a prerequisite for reestablishing your credit, as long as you make your payments on time.

In House Financing Dealerships in Southfield

Ever wondered about dealerships in Southfield promoting buy here pay here sales? Dealers like these make credit decisions on site, instead of outsourcing this to banks or lenders. They finance people with problems like bankruptcy or repossession in the last year. Although they don’t perform credit checks, they have substantial drawbacks for any consumers, including inflated down payments, outrageously high interest rates, and very high-mileage vehicles. Few of them have relationships with the credit bureaus, so they can’t help you build your credit. All in all, you are likely better off financing through a dealer like the ones we can put you in touch with, free of charge.

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Calculating Your Borrowing Power

Variables like credit and income impact the amount you’ll be able to borrow. The following table displays loan amounts for people of various credit scores, based on an income of $2,262 monthly, the average for Southfield residents. Don’t forget, these are only estimates.

Credit Rating Income Factor Loan Amount
Great Credit 10 $22,620
Average Credit 9 $20,358
Subprime Credit 8 $18,096
Poor Credit 7 $15,834
Very Bad Credit 6 $13,572

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

Can You Finance a Car with Zero Down Payment?

Assuming you have good credit, then yes: you can usually get financed without providing a down payment. Shoppers with less-than-perfect credit, however, may need to offer up a down payment. As you can imagine, lending to customers with bad credit is a much riskier process, and a down payment ensures that some percentage of the vehicle’s value is not in jeopardy. That said, there are car dealers who offer financing for people with no money down.

We help our clients get approved everyday, despite issues with their credit and down payment.

Southfield-Specific Credit, Income Numbers

Contrary to popular belief, there is more to auto financing than just your FICO score. Lenders check the following:

  • Debt to Income Ratio
  • Stability
  • Payment History

Here are average statistics for Southfield residents.

  • Pre-Tax Earnings: $27,145 Annually
  • Average Car Payment: $249 (11% of Income)
  • Suggested Car Payment: $181 to $226 (8%-10% of Income)

If you have less-than-perfect credit, you’re not alone. This chart depicts the estimated number of Southfield residents at each credit tier.

FICO Score % of Population Residents
300-499 2% 1,652
500-549 5% 4,130
550-599 8% 6,607
600-649 12% 9,911
650-699 15% 12,389
700-749 18% 14,867
750-799 27% 22,300
800-850 13% 10,737