Income, credit, down payment – getting a car financed can be a confusing process, but we’re here to guide you every step of the way. Gone are the days of going from lender to lender, trying to secure financing. These days, many lenders and dealers have whole departments dedicated to web-based approvals, and we can get you approved from the comfort of your computer. Just apply online, and we’ll start working to get you approved for a car loan in Lynn at a competitive rate.
The Amount You Can Finance
One of the first questions we always hear from clients is this: what size loan can I afford? That will be determine by two primary factors: your income and history of credit. Below, we’ve displayed how much consumers of various credit scores can finance, based on the average monthly income in Lynn, $1,738. Please be aware that these are only estimations.
|Credit Score||Income Factor||Loan Amount|
|Temporary Bad Credit||8||$13,904|
|Very Bad Credit||6||$12,166|
To find out how much you can borrow, multiply your pre-tax monthly income by the most suitable income factor. Keep in mind that these numbers exist as maximum estimates. Just like buying a house, it’s generally better to borrow less than you’re able to. This keeps you in a more financially sound position, and better prepared to cope with the economy’s ups and downs.
Financing a Car with Bad Credit in Lynn
More complicated? Yes. Impossible? Not at all.
A FICO rating of 620 or less is generally deemed subprime or poor credit, and about one quarter of Essex County residents are estimated to fall into this category. Luckily, our system is perfect for consumers in need of a car loan in Lynn with bad credit. There isn’t a minimum FICO score to worry about, and we can help applicants at each of the lower credit tiers. To be sure, the APR on your loan would be lower if you had a credit score of 700 plus, but that would be the same for any type of loan. It is best to allocate less than 10% of your monthly income toward a car payment, and to purchase an affordable used vehicle that won’t depreciate as quickly as a brand new one. After all, negative equity is that much more of an issue with bad credit, since the interest rates are higher. Generally, you can expect to pay 12-18% APR on a used vehicle in Massachusetts.
Down payments are also important. They refer, of course, to payments made at the time that you sign for your vehicle. They are sometimes required of consumers with a subpar history of debt repayment. At this stage, the Loan-to-Value ratio becomes important. This is the amount borrowed versus the wholesale value of the vehicle.
|Amount Borrowed||Vehicle Value||LTV|
The lower the LTV, the lower the risk for the lender. With that being said, there are car dealers who provide auto loans in Lynn with no money down.
Lynn Buy Here Pay Here Car Lots
This sort of financing is sometimes known as:
- Your Job is Your Credit
- Tote The Note
- Rent to Own
- We Finance
These dealerships specialize in helping people whose credit has been rejected by other banks. Sure, the rates are high, but there are fewer roadblocks to getting approved. However, most in house financing dealerships aren’t able to help customers re-establish their credit, and they are notorious for engaging in nefarious schemes and predatory tactics. More often than not, you would be better off applying online, so we can find you an auto loan in Lynn that can help you re-establish your credit.
Lynn-Specific Income, Credit Statistics
Lynn has lately been trying to help its once-tarnished image of a crime-ridden “sin city” with a campaign that trumpets it as the “City of Firsts,” paying homage to the many innovations the city has witnessed. There has been a lot of development as of late in the old warehouse districts, leading to a hoped real estate comeback, and big employers such as GE Aviation continue to keep the economy going. Listed below are some average stats for residents of Lynn.
- Average Income: $1,738 Per Month
- Average Monthly Payment: $191 (11% of Income)
- Suggested Monthly Payment: $139 to $174 (8%-10% of Income)
Consumer Credit in Lynn
Next we’ve divided up Lynn’s population by FICO rating. These are just estimates, but they should give you a general idea of where you stand in relation to other consumers in the area.
|FICO Score||% of Population||Residents|
Your credit score will have a significant effect on your APR. However, if you have sufficient income, we can normally find somebody to finance you, even if you have bad credit.