Finding car loans for $30,000 is good for buyers who have recent bankruptcies or other serious credit problems but needed to drive a car or truck. If you have sufficient cash for down payment, or has a good income or significant collateral, it is easy to get approved for a $30,000 car loan when you have bad credit compared to banks and normal lenders. You can even get better rates by comparing several auto loan companies with low credit requirements.
Unlike some personal loans, car loans are actually secured loans since lenders can repossess the vehicle when you default on the payments. However, new cars will depreciate in value over time, so you still need to provide some additional collateral if you like to buy a $30,000 car with bad credit.
Most lenders will require suitable loan collateral to process your requests, so make sure you provide all the necessary documents and deeds. Some car loan comparison websites allow you to submit your income documentation just once to multiple car financing firms, so it can be more convenient.
When you are unable to provide a good credit history to get a car loan, the lender needs other means to verify that you are able to pay back the loan on time every month. This is where your collateral, stable employment records, sizable income statements, or regular payment history on other accounts can be used to support your case to get a truck with poor credit. Note that the collateral used must have clear title stating you are the sole owner.
You need to know the high risk on car loans with additional collateral. In the event that you default on payments, both the vehicle bought and your pledged asset will be repossessed by the lender.
No matter what your credit score is, an important consideration for lenders is actually your current income versus your total debt obligations. As long as you have sufficient to pay the monthly car loan installment, it will be more easier to get no hidden fee car loans despite bad borrowing history. If you income is irregular, you should have at least stable employment for the past two years.
Always compare multiple lenders when searching for the best place to buy a car with bad credit. There is no need to overly worry about your credit report being marked for multiple queries by several lenders. Be sure that the lender specifies clearly they are offering easy credit car loans. Otherwise, you may get the wrong rates instead.
Although car loans with low APR make things easier, you do need to make sure your income can support the car loan installments subsequently for the next 60 months or so, depending on your loan term. If you are late in payments, your FICO score will be affected and you will not be able to refinance your existing auto loan for cheaper rates easily.
Generally, choosing a 60 month bad credit car loan over a 36 month plan means that it is more affordable to pay each month, but will cost you more interest fees over the long run. For example, if you buy a $15000 car with an auto loan at 21% APR (such as a 2011 Chevrolet Aveo, 2010 Honda Fit etc), the monthly installment is $406 over the next 60 months and you pay a total of $24348. Choosing a shorter 36 month car loan, each installment is $565 but you pay a lesser total of $20344 or roughly $3000 in savings over interest fees.
With any type of loans, it is very important to be conservative and play safe. Do not let your debt to income ratio exceed 40% by choosing a larger monthly installment in an attempt to save money. Your main priority here is to rebuild a good FICO score and do not let any late payments affect it.
With good credit scores, you can get car loan rates around 5% APR and when you refinance at that new rate, your savings will be even higher. For example, a $15000 car loan at 5% APR over 60 months cost only $283 for each installment and the total amount paid is $16984. This difference should let you seriously consider whether you really need to buy a $30,000 car with easy credit car loans now or wait until your FICO score is better.
Do not forget about the costs to cover sale taxes and vehicle title. Sometimes these can be rolled into the car loan as well or the consumer must pay upfront for these from their own pocket. You will need to account for these when comparing quotes from different lenders.