Expected Terms of an Auto Loan For Someone With Bad CreditIf you are considering financing a new car, the expected terms of an auto loan for someone with bad credit can be, in a word, devastating. Let’s explain. As you know, since the downturn of the economy, banks are not willing to approve loans as they have in the past. The sub-prime mortgage crisis took care of that. As a consequence, banks are increasing interest rates, especially for individuals who have low credit scores or bad credit. Moreover, auto dealerships are following suit. Here are examples of what you can expect the terms to be when you are applying for an auto loan and have bad credit.
- Your interest rate can go as high as 23%
- You will be required to take out a four or five year loan
- You may be required to provide a high down payment