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You may be able to get a car loan with bad credit, but you’ll want to carefully weigh the costs. If you need a car loan but have less-than-perfect credit, your financing terms may be expensive. Lenders use credit scores to estimate the likelihood you’ll pay back your loan — the lower your scores, the more risk they believe they’re taking on. In exchange for that risk, lenders will usually charge a higher interest rate. For example, someone with subprime credit (which Experian defines as scores of 501 to 600) received an average rate of 11.33% for a new vehicle and 17.78% for a used one in the second quarter of 2021, according to an Experian report. By comparison, the average interest rate on a 60-month new-car loan was 5.14% during that same period, according to the Federal Reserve. We’ll look at some steps you can take to shop for an auto loan that may help lower the cost of financing a vehicle, as well as review our picks for auto lenders that offer car loans for bad credit. How can I get financed for a car with bad credit? These steps could help you improve your chances of getting approved for a car loan that fits your budget. Check your credit Before you begin shopping for a car loan, check your credit. Review your credit reports for any incorrect information and dispute those errors. Inaccuracies could lower your credit scores and hurt your ability to qualify for a loan. Checking your credit can also help set your expectations before you start looking for a loan. You can check your Equifax and TransUnion credit reports for free on Credit Karma or request one free credit report from each credit bureau per year at annualcreditreport.com. If you don’t need a new car right away, taking some time to build your credit could pay off — you may be able to qualify for a lower interest rate that could save you thousands on your auto loan. But if you can’t wait, you may want to consider asking a family member or close friend to be a co-signer. A co-signer with good credit could give you a better chance of getting approved for a loan or may help you get a better loan rate and terms. Save for a down payment Saving for a down payment can come with several benefits. First, a down payment may help you qualify for an auto loan more easily, especially if you have a low credit score. Without a down payment, the lender takes on more risk since it may lose more money if you don’t repay the loan and it needs to repossess the car. In fact, some lenders may require you to put some money down. Plus, you’ll pay less interest with a down payment. The more money you put down, the less you’ll need to borrow for the car. That means you’ll pay interest on a smaller balance, lowering your total interest paid. You may also get a lower interest rate if you make a down payment. Lenders consider your loan-to-value ratio — your loan amount versus the value of the vehicle — when setting your interest rate. Determine how much you can afford Think beyond your monthly loan payment as you figure out how much you can afford to borrow. Consider the costs of car ownership — such as fuel, regular maintenance, auto insurance, and any parking expenses or property taxes — and factor them into your budget. It may be tempting to stretch your loan term to six or seven years in exchange for a lower monthly payment. But keep in mind that a longer loan term means you could end up paying more in interest over the length of the loan — and you increase your risk of becoming upside down on your loan, which can create some challenges when it’s time to sell or trade in your car because you’ll owe more than it’s worth. Our auto loan calculator can help you estimate how much you’d pay in interest on a car loan. Shop with different lenders Shopping around and comparing rates and loan terms across lenders may help you find the best loan for your needs and your budget. If you have bad credit, here are some lenders you might consider. Your current bank or credit union — If you already have a relationship with a bank or credit union, that can be a good place to start. Online lenders — Some online lenders and lending platforms specialize in car loans for people with bad credit. They may also allow you to apply for prequalification directly on their websites. If you’re prequalified, you’ll be able to see the estimated loan rate and terms you may qualify for. Just keep in mind that prequalification isn’t a guarantee you’ll be approved for the loan or the estimated loan terms. Car dealerships — Dealerships typically have relationships with a number of banks and finance companies, which means they may be able to find a lender in their network that will approve you for a loan. Some dealerships also have special financing departments that are dedicated to helping people with poor credit. Buy-here, pay-here dealerships — If you can’t get approved for an auto loan anywhere else and you need a car, a buy-here, pay-here dealership could be an option — but consider it a last resort. These “no credit check” dealerships offer their own loans to people with bad credit — and their interest rates tend to be higher than those offered by banks and other lenders. To minimize the impact that shopping for an auto loan can have on your credit, it’s a good idea to shop for rates within the same time period. FICO scoring models count multiple credit inquiries of the same type within a 45-day period as a single inquiry. VantageScore counts multiple inquiries within a 14-day period as a single inquiry. Keep in mind each time your credit is ran by a lender an average of 5 points are deducted from your credit score. These points will be removed within 18 months. Can I get a car loan with a 500 credit score? It’s possible to get a car loan with a credit score of 500, but it’ll cost you. People with credit scores of 500 or lower received an average rate of 13.97% for new-car loans and 20.67% for used-car loans in the second quarter of 2021, according to the Experian State of the Automotive Finance Market report. That’s a big difference from the loan rates for people with credit scores of 661 to 780 (considered prime) — they received average rates of 4.21% for new-car loans and 6.05% for used-car loans. Getting a car loan with a credit score of 500 could be tough, too. The Experian report shows that only 0.37% of new-car loans and 4.35% of used-car loans issued in the fourth quarter of 2019 went to people with credit scores of 500 or lower. Best car loans for bad credit Here are some of our picks for lenders that offer car loans for bad credit around you right now. Good for people who have filed bankruptcy: EZPAY CARS In general, bankruptcies in your credit history can affect your ability to get approved for an auto loan. But EZPAY CARS considers applicants who have filed for bankruptcy in the past — as long as the bankruptcy has been discharged. Next steps Car loans for bad credit are out there, but they can be expensive. Taking steps to improve your credit before car shopping can lessen some of the financial burden. If you’re unable to delay your car purchase, consider buying a lower-priced, but reliable, used vehicle that meets your needs but requires you to borrow less. As you pay down your loan and work on improving your credit, you may be able to refinance for a better rate down the road.

21 Helpful Local Car Buying Tips & Expert Advice If your prehistoric Junker has finally driven its last mile, or if you’ve been researching new cars to buy for months on end, a trip to your local auto dealership looms just over the horizon. (Congratulations!) For lots of shoppers, however, even thinking about purchasing or leasing a vehicle can launch their blood pressure through the roof. The haggling, negotiating, down payments, paperwork… everything about buying a car can be stressful for the average person. So, how does one get through the entire car-buying process with all their hair intact? What’s the best way to shop for and buy a car? Store these 21 great tips in your brain’s filing cabinet to ensure you don’t get too frustrated when shopping for and buying your new vehicle. 21. Know Your Budget Your heart may crave that new 2021 Kia K5 in White, but what does your head say? If your budget doesn’t support a purchase that big, don’t even try to convince yourself otherwise. You may just end up with an upside-down car loan, and that’s much less enjoyable than a more affordable pineapple upside-down cake. But how do you calculate your budget when buying a new car? Most experts recommend spending less than 25% of your monthly income on all the vehicles in your driveway. This includes monthly lease or finance payments, insurance fees, registration costs, and any costs associated with fuel and auto maintenance. You can also use our online car payment calculator to help you determine your budget before even setting foot in our Sedalia Toyota dealership. Get Pre-Approved Schedule Test Drive Value Your Trade 20. Buy vs. Lease Do you know whether you want to finance (buy) or lease a new vehicle? You should look into buying a new car if: You drive more than 12,000 miles annually; You like building equity and selling or trading in your vehicles; You have enough for a down payment; Your credit rating is excellent; You like to add aftermarket parts and accessories to your cars; You’re good at keeping up with repairs and maintenance; and You can pay more each month, as financing a car can be more expensive than leasing in the short term. On the other hand, you should consider leasing a new vehicle if: You want lower monthly payments; You don’t have an adequate down payment on hand; You like the convenience of having a vehicle always under warranty; You keep a tidy car, inside and out; Your love for the latest technology knows no bounds; You enjoy getting a new car every few years; and You don’t drive too often/too many miles each year. 19. New vs. Used vs. Certified Pre-Owned Similarly, do you know if you’d like your vehicle new, pre-owned, or something in between? You’ll pay more overall for a new car than you would a used or CPO vehicle, but you’re also benefitting from the newest technology, better fuel economy, advanced safety features, and a full New Vehicle Warranty. If those are important to you, consider buying a new vehicle, like a Toyota Corolla. With a used vehicle, your wallet will thank you. However, you won’t always be guaranteed a warranty or any of the modern features available in newer vehicles. If you do choose to go pre-owned, we suggest researching and test-driving the best used vehicles you can find before making a decision. Certified pre-owned vehicles are great options for shoppers who enjoy the reliability of a new car at a used-car price. For instance, every affordable Certified Pre-Owned Kia or Hyundai at our dealership is a late-model vehicle that’s been inspected and comes backed with an extended warranty. Get Pre-Approved Schedule Test Drive Value Your Trade 18. Research, Research, Research As mentioned above, it’s imperative that you do your due diligence and research every vehicle of interest to you. What are their 5-year value estimates? Are there any ongoing recalls with each particular model? Do any of the vehicles have features that you absolutely need? What have owners said about these models? Has anything changed from the previous model year? Narrow down your selection to the top 5, follow up with step 27 (below), then visit local car dealerships near you to take each for a test drive. 17. Apply for Auto Loans Always review current interest rates and secure your auto financing before going into the dealership. You can apply for car loans online at most dealership sites, including right here at Wallace Auto Group in Stuart, as well as at local credit unions or banks. Oh – and get your quote in writing! There’s nothing worse than picking out the perfect vehicle, only to discover that your financing fell through because nothing was ever formalized. 16. Check for Incentives and Sales Do you know if your dealership has any cash-back promotions, lease incentives, or exclusive discounts that apply to the vehicle you’d like to buy? Have you checked the vehicle manufacturer’s official website for current offers? Sometimes deals stack, too, which is something you should absolutely take advantage of. View our current Kia specials, used car deals, and other Brand incentives such as military discounts and student discounts. There's even discounts out there for Educators and Teachers, just ask your local dealership! 15. Shop Everywhere As much as we’d love to say, “Only shop at our Wallace car dealerships,” we can’t do so with a clean conscience. It’s important to shop around to find the best rates, pricing, and dealer to handle your sale or lease. Having a quality relationship with your auto dealer is equally as essential as price, too. 14. Negotiate Confidently When the time comes to sit down at the negotiating table, let your salesperson know that you’re all business. (Easier said than done, right?) Be confident. You hold all the power in this transaction, even if you don’t feel powerful. Throw out a low number to start. If the salesperson bites, you didn’t go low enough. If the salesperson won’t budge, walk away. If the salesperson brings the price down to your level – well, you’ve just successfully negotiated your next car purchase. Get Pre-Approved Schedule Test Drive Value Your Trade 13. Add Add-ons Sparingly Although we like offering our customers the best Kia, Hyundai, Jeep, Nissan, Chevrolet and many other vehicles with the best features, we realize that add-ons and accessories can get expensive. So, as much as it pains us to say this, we suggest purchasing add-ons if they help your day-to-day commute, provide more safety, or make life more convenient. Do you need GPS navigation? It could help if you travel to new places frequently, but if you barely leave the sanctity of your living room or office, your smartphone probably suffices. 12. Get a Mechanic’s Advice When buying a used car, you should consider getting it looked at by a qualified third-party mechanic. A mechanic can inspect the vehicle for potential issues, which will give you more leverage to negotiate a better price – if you even want to continue with that purchase. 11. Know the Lingo Like any industry, dealers and salespeople have their own language. If you don’t speak that language, you may have a difficult time getting the best deal. Review industry terms and common phrases here. 10. Don’t Grow Too Attached You really wanted to drive that beautiful Hyundai Palisade home, but something just didn’t click – and that’s okay because there are plenty of four-wheeled fish in the sea! If, for whatever reason, you can’t come to terms on your top pick, search elsewhere. Don’t go over your budget or sacrifice anything just to be able to claim a victory. Oftentimes that victory turns into a defeat. 9. Don’t be Afraid to Walk Away Again, you have the power. If you aren’t satisfied with your experience at the dealership or with a salesperson, calmly stand up and walk right out those doors. You don’t even need to utter a word – powerful people speak with their actions, right? 8. Embrace Suggested “Alternatives” Traditional and modern shoppers, like yourself, will typically visit our Wallace Auto Group car dealerships with a particular model in mind. However, don’t automatically turn a cold shoulder to the idea of buying a different vehicle. Salespeople may recommend alternative models with features that better match your wish list, budget, and situation. For instance, if stock is low on Kia Telluride SUVs, prices may be higher; but if your dealer has a big selection of Tellurides for sale, you may be able to get one for a great price. Ask and ye shall receive (suggestions, at least). Get Pre-Approved Schedule Test Drive Value Your Trade 7. Always Double Check Paperwork Tiny print. Missed signatures. Amended terms. If you don’t check these out, they may haunt you. Don’t sign papers that have errors or terms you didn’t agree to; contracts are difficult to break. If at all possible, attempt to complete some of the paperwork online. This allows you to take your time reviewing documents, while also speeding up your purchase at the dealership. 6. Read Dealership Reviews If your chosen dealership lacks good customer reviews, there may be a reason why. Be sure to read the reviews to see if there’s a common thread between bad ratings. Oftentimes, customers will share common complaints about an aspect of the dealership that wouldn’t impact you and your new car purchase, such as poor recall repair support or long waiting times. 5. Try Refinancing Did you know you can refinance an existing car loan? Depending on when your original financing went through, you may be able to get a better auto loan with a lower interest rate. After purchasing your vehicle, check auto finance rates every few months to see if refinancing is a good option. 4. Get Auto Insurance Quotes Before Buying Request quotes from your insurance agent for each vehicle model you’re interested in. You should also consider requesting quotes from multiple auto insurance companies to ensure you’re getting the best rate available. 3. Don’t Assume Never assume that something should be a certain way. If you want a specific feature in your Hyundai Santa Fe, ask about it. If you want that gift card or free oil change for taking a test drive, ask about it. If you want to sign up for that 3-month trial of SiriusXM Radio, ask about it. Otherwise, you may get home to find your dreams dashed. 2. Schedule Your Test Drive You can always swing by your local dealership to check out their inventory, but scheduling a test drive online or by phone is best. This way your dealer can have your car cleaned, prepared, and waiting outside for your arrival. Click here to schedule your test drive at Wallace Auto Group in Stuart, FL. 1. Bring the Family Shopping for a car is a family-friendly event. So, when you arrive for your test drive, be sure to bring the entire gang. That way, everyone can test out the back seat, climate controls, safety or driver-assist features, and whatever other gizmos and gadgets are crammed in the car. Get Pre-Approved Schedule Test Drive Value Your Trade

Used Car Buying Tips for Buying a Used Car in South Florida Buying a previously owned vehicle can be a great way to save big on one of your most expensive purchases, but only if you do it right. Don’t get caught up in the excitement of your car purchase and end up with someone else’s headache.  If you’re looking for a trusted way to buy a reliable used car in South Florida, follow these tips: Tip 1: Get Preapproved & Set a Budget We will never be able to express the importance of getting preapproved for any loan, especially one for a used car. Walking into a dealership with a preapproval will help you not only stick to your budget, but it also lets the dealer know you’re serious about buying a car. Thinking of paying for the used car in cash? Just because that sounds like a good idea doesn’t mean it is always the best strategy. Spending the bulk of your budget on the vehicle itself can eliminate the financial flexibility to pay for car insurance, any deductibles (should you have an untimely accident) or for any possible future vehicle repairs. This is where we would recommend considering low interest financing rates as an option to keep cash in your pocket, while still having that financial flexibility. You can get a really good interest rate from a local credit union on a Auto Loan, CPO Car, or Used Car with a good credit score. This helps when getting the best monthly payment possible on your new or used car loan. Tip 2:  Begin the Research Process Yourself If you prefer shopping on your own and to do your own research, it's recommended to use national on-line sites such as Edmunds.com, NADA.com and/or AutoTrader.com for reliable used vehicle values. Be careful to look out for vehicles with accidents, that are flood-damaged or with higher miles as they can lower the value of your vehicle after purchase. Make sure to also check the Kelley Blue Book value on the vehicle that you are interested in purchasing. This will help you make a decision whether the car is worth the selling price and is a good deal or not. Most franchised new car dealers have a wide selection of used vehicles on site. Many of those vehicles are Certified Pre-Owned (CPO) and come with an extended factory warranty, which is great option for consumers choosing to purchase a used vehicle. Tip 3:  Purchasing from an Independent Dealer There are many reputable independent dealers in South Florida; however, be sure to check their yelp reviews (yelp.com) and take the time to review their customer service history with the Better Business Bureau (BBB.com).  The few minutes you spend on this research may save you from a potential headache. Step 4:  Always Get a Vehicle History Report Once you’ve narrowed down your search, and before you purchase any used vehicle, be sure to ask us to provide a CARFAX report. This will show any collisions, especially with air bag deployment, about which you should be aware. Its recommended not to purchase any used vehicle without reviewing one of these reports. You will want to know all of the maintenance records that come with the vehicle. Step 5:  Inspect & Test Drive the Vehicle Before making your final decision, take your top used car choices out for a test drive.  If you’re not sure what to look for either take our Used Car Checklist with you or connect with an Auto Advisor as they will know what you should be looking for. Step 6:  Making it Official After you have decided on a used car and made sure it suits your needs, it’s time to make it official! Contact Wallace Auto Group to tie up loose ends and finalize your lending documents. Now that you have some helpful tips when buying a used car in South Florida, it’s time to get your new ride!

What To Look For When Buying A Used Car Buying a used car can be a good option when you're looking for a quality vehicle without the higher price tag. While a used car can be a sensible option, buyers still need to make smart choices. There's a lot to look for when buying a used vehicle, but here are some ways to help you choose the right car for you. INSPECT THE CAR'S EXTERIOR AND INTERIOR Inspect both the outside and inside of the vehicle. Look over the exterior of the vehicle, says CARFAX, checking for scratches, dents and rust. You probably don't need to be worried about small dings or scratches, but larger areas of damage may be cause for concern. CARFAX also recommends checking to see that body panels line up evenly, as uneven panels may indicate the vehicle was in an accident but not repaired well. It's also a good idea to open and close the doors, hood and trunk to see how easily they move. Kelley Blue Book (KBB) suggests checking for paint overspray on the inside of the hood, trunk and doors and to be sure the color of the vehicle matches on all parts. If you notice overspray or mismatched paint, that part was likely repaired and repainted. Inspect the interior by sitting in all the seats and looking for unusual wear and tear in the upholstery, says CARFAX. If the interior of the car smells musty, check the carpet and floor mats for signs of a a leak or water damage. GO FOR A TEST DRIVE Going for a test drive can help you determine the condition of the car and whether it's a good fit for you, according to Edmunds. You may want to turn the key to the "accessory" position before starting the engine, says KBB. You should see all the dashboard warning lights go on. If they do not light up, or stay on when you turn the ignition, make sure the issue is inspected. When you start the engine, KBB recommends listening for tapping and clicking sounds, which could indicate a problem. While on a test drive, keep your eyes and ears open. CARFAX suggests driving the car on different types of roads and at varying speeds to see if the transmission shifts smoothly. Make sure to note any unusual engine or brake noises, and whether all of the electronics in the car are working properly. Also, be sure the brakes work properly and do not pull the car to one side, says CARFAX. Get Pre-Approved Get Today's Specials Value Your Trade IS LOW MILEAGE ON A USED CAR BETTER? Low-mileage used cars can certainly be appealing, but it doesn't necessarily make them a great deal. Low mileage can certainly mean less wear and tear and a longer life. However, if a car is driven infrequently, AutoTrader says that the plastic and rubber parts on the vehicle may dry out and get brittle. It's also better for the drivetrain when the vehicle is used consistently. You may end up with a vehicle that needs a lot of repairs and reconditioning, says AutoTrader; which could cost you more in the long run. It's smart to check the mileage on a used vehicle, but keep in mind that how the vehicle has been maintained and used may be more important that what the odometer says. CHECK FOR LEAKS Any car leaking fluids is generally a red flag for a needed repair. Check under the car to see if there's any fluid leaking, says CARFAX. Black fluid might be an indicator of leaking oil, while green, yellow or pink fluid may indicate a leak in antifreeze and reddish fluid could be a leak in the transmission or power-steering fluid, says Cars.com. DETERMINE A FAIR PURCHASE PRICE To help ensure you're being charged a fair price, make sure to compare prices for the same make, model and year with several sources. Checking and dealer prices can simply be done online. There are a number of online tools you can use to compare prices, including KBB and National Automobile Dealers Association Guides. Even though condition and mileage will play a role in price, you can still get a ballpark figure of the vehicle's market value. DO YOUR RESEARCH There's a lot of information online that can help you check on a particular vehicle's history as well as whether there are any recalls on it. LOOK UP THE VIN The Vehicle Identification Number, or VIN, can reveal a lot about a car. Checking a VIN decoder chart is a quick way to see if a used car's VIN information matches up with what's in the vehicle title and records, according to Edmunds. There are a number of VIN decoders available online, including one from the National Highway Traffic Safety Administration (NHTSA).The VIN can also be used to see if there are any recalls on the vehicle. You can look up a vehicle by VIN on the NHTSA's Safety Issues and Recalls page to see if the vehicle needs repairs due to a safety recall. Keep in mind, however, that there may not be information on an older vehicle, any non safety-related recalls or recently announced recalls. Certain brands and international vehicles may also not be listed. Get Pre-Approved Get Today's Specials Value Your Trade REVIEW THE VEHICLE HISTORY REPORT A vehicle history report can help you see title problems, ownership history, service points and previous accidents, says KBB. You can get a vehicle history report online for a fee by entering the VIN or license plate number, says Edmunds. If you're buying through a dealer, though, they may provide a history report for free. CONSIDER A CERTIFIED PRE-OWNED VEHICLE Purchasing a Certified Pre-Owned (CPO) car can be a wise choice because it usually offers the buyer an extra level of quality assurance. KBB states that each manufacturer has different standards for CPO vehicles, but they're typically less than five years old and have less than 75,000 miles on them. Generally, the dealer has checked all major systems and reconditioned the vehicle. Many dealers also offer these vehicles with warranties. You can find a great deal on a quality pre-owned used car at Wallace Auto Group located in beautiful South Florida in Stuart, Florida. Just minutes down I95 highway off exit 101. They have been proudly serving the Treasure Coast and surrounding areas for over 45 years with New & Used cars. Get Pre-Approved Get Today's Specials Value Your Trade