It’s been a rough summer, long work commutes and big chuckholes have really put a beating on your vehicle. You would never dream of taking your vehicle on a cross-country trek, and your teeth chatter just thinking about how long it takes your heater to warm up in winter. Sounds like you need a new car.
What’s that, you say? Your credit is really bad, you keep getting turned down and you just know that no one will approve you? All things considered, old buddy, it would appear that you simply should be pointed the correct way. Here at Padela Motors, we can help with that.
The Truth about Bad Credit Auto Dealers In Houston:
The fact is, buying a car with bad credit can be a challenge. You may confront many knocks along the way i.e.; narrow vehicle collection, higher interest rate, and upfront deposit requirement. Nevertheless, these things can be overcome with a little pre-arrangements and the perfect bad credit auto dealers in Houston.
When you need auto financing and have poor credit, the answer is a subprime auto loan. These differ from traditional loans in a few key ways. Most subprime lenders are not direct lenders and work mainly through dealerships that are signed up with them. Individuals with terrible credit will in all likelihood need to go to a dealership first since it’s hard to get pre-endorsed if you have credit challenges.
Buyers with low credit tend to be a higher loan risk that is why you will also need to bring some additional documentation apart from your driving license and state ID.
What Does the Dealer Need?
The lender will judge your loan risk by looking at how stable your income is, your employment history and how long you have lived in the area, among other things. They will also look at your ability to pay for the car loan based on your income, bills and how likely you are to pay back the loan based on credit history.
As a borrower with credit challenges, you will have shown the lender proof that you earn what you say you earn, and that you live where you say you live. Along with this documentation, there are two other things you will need to provide to a subprime lender that may surprise you: proof of a working phone and a list of personal references.
Let’s look at the four things—known as clauses—that you will need to provide to a dealer to get a subprime auto loan.
1. Proof of income – This must be in the form of a computer-generated check stub. It must be current, show year-to-date income, and your wages must be reported on a W-2 form at the end of the year.
2. Proof of residence – This must be a current (within the past 30 days) utility bill in your name, showing the address used on the application. A good tip: make sure your bill is up to date. It may not look so good to a lender if the bill you are using as proof is 30- or 60-days past due. Also, most lenders will require your rent or mortgage to be current.
3. Working phone – This must be a landline or contract cell phone from a national carrier, in your name. Prepaid cell phones can’t be used. As lenders sometimes say “No phone means no loan!” This is so they can reach you if something happens, such as missing a payment.
4. References – This typically should be a minimum of six people, with full names, addresses and phone numbers. They can be co-workers or friends, but some lenders prefer you to use relatives. The one rule is that they cannot live at the same address as you, and each must have a different address.
Since you recognize what’s in store, you can begin exploring your next vehicle. Let Padela Motors enable you to begin. We invite you to visit us at your earliest convenience.