Need to finance a car, but your credit isn’t perfect? You aren’t the only one. More than 25% of US consumers have credit scores of 620 or less, and we’re here to help. We can get you approved for financing through our extensive network of Wisconsin lenders and dealers.
When you apply online, our dealers and lenders compete for your business, thereby maximizing your odds of being approved. For people with poor credit, this is a great way to get financed.
Subprime Auto Loan Rates in Wisconsin
Inflated rates of interest are a fact of life when you have a credit score of 620 or less. Individual interest rates vary widely based on a number of factors, including your lender, credit score, type of vehicle, financing term, and other factors. However, we can give you a few estimations based on our experience in the industry.
|FICO||Used Vehicle APR||New Vehicle APR|
If these rates seem high, they are. For this reason, we recommend that you minimize your total interest paid by supplying a down payment and opting for the shortest repayment term you can.
- Resident of Wisconsin.
- Annual income of $18,000 before taxes.
- Employed for a minimum of 1 year.
- Any bankruptcy discharged.
- No repossessions in last year.
Financing a Used Vehicle
This varies from lender to lender. However, we’ve listed a few of the common requirements here.
- New or used vehicles.
- Not more than 75,000 miles on vehicle.
- Vehicle no more than 6 years old.
- Minimum loan amount of $7500.
Typically, your auto loan will not be a “blank check.” Rather, you will have to select your car or truck from a specific dealership or network of dealerships.
Down Payment Requirements
Many lenders and dealers who accept people with bad credit do require a down payment. At least down payments have several benefits for the consumer:
- Better odds of being approved.
- Reduced loan amount.
- Less paid in total interest.
- Less likelihood of negative equity in the vehicle
You might have seen no money down, “sign and drive” promotions advertised on TV or the radio. If your lender offers you this option, plan to drive the vehicle until it’s fully paid off, rather than trading it in early.
Will This Help My Credit?
If you don’t miss any payments, financing a car can increase your FICO score. The auto loan pay-off itself is not as important. Rather, it’s the months of making payments in time. Missing or late payments, however, can really ruin your credit. So you want a monthly payment you can easily afford – don’t stretch your budget on this.
We recommend spending 10% of your income, at maximum, on your car payment. To illustrate this, let’s look at the average numbers for Wisconsin residents.
- Monthly Income: $2266
- Total Transportation Budget: $408
- Recommended Payment: $227
- Leftover Budget for Fuel, Maintenance, etc: $181
Spending too much could end in missed payments, delinquency, even repossession.