Second Chance Loans in Fallston, MD
Do you need financing for a new or used car purchase but have bad credit? Second chance loans, which is another name for bad credit financing, may be an option for you. Second chance loans are typically separated into bank-financed and dealer-financed loan categories.
Dealer-financed auto loans are often found at dealerships advertising "buy here pay here" programs; these loans require the car buyer to make their monthly payments directly to the dealership from which they purchased. These loans are often approved for older vehicles with high mileage on the odometer. To guarantee financing for the car buyer, these "buy here pay here" dealerships will likely seek a relatively high down payment relative to the car's value.
Indirect lending -- also known as bank-financed loans -- are still made through a dealership, but the car buyer makes the monthly payments to the bank that is holding the car's lien. Since buyers are more likely to make timely monthly payments for newer vehicles, banks will generally finance new or late-model cars.
Keep these facts and tips in mind when deciding which type of loan is right for you:
- Know your credit score and the information in your credit profile.
- Buying a car with a sub-prime loan is different from buying a car with a traditional loan. Your income and current debts will be perused by the lender and you will be budgeted for a monthly payment.
- Research insurance prices on comparable cars in the price range you are approved for, as insurance rates can differ greatly between various makes and models.
- If you are buying a used vehicle, have it inspected by an ASE certified mechanic before buying.
For second chance loans or bad credit financing near Bel Air North and Forest Hill, MD, contact the Finance Department at Bel Air Honda in Fallston, MD. You can visit our full-service Honda dealership at 1800 Belair Rd., Fallston, MD, or call us at 410-216-5691.Find Out If You Qualify