Bad Credit Dealership In Salinas, CA
If you are purchasing, financing or leasing your car, SUV or truck in Salinas, CA, it pays to have an impeccable credit score. However, not all of us have a perfect credit history. If your credit score isn’t good, it doesn’t mean you can’t get the right vehicle for you. It does mean that it is going to be more difficult for you to get approved, but the right finance manager can help. Purchasing, leasing and financing aren’t all suited to everyone, and it takes patience to learn what fits best for you. Here at Mikes Auto Sales, we have the right solution to get you in the right vehicle you have been looking for!
Is Leasing The Right Option For You?
Make sure that your leasing decision is something that fits into your budget and lifestyle before you take the next step. When leasing a car, truck or SUV, the vehicle needs to be returned to the dealership in good condition and within the agreed upon number of miles on the odometer. It's important to pay monthly attention to your odometer and obligation.
Have you thought about turning in your vehicle with more than average wear and tear? Think again. This may actually cost you a significant amount of money out of pocket due to the repair costs. Salinas, CA is a large city and it is easy to do a lot of driving in this region. Also, depending on your daily grind and employment status, you will most likely see a large amount of driving and detouring you do on a daily and monthly basis. Leasing a car is not the same thing as financing a vehicle at Mikes Auto Sales in Salinas, CA. With a lease, you get to drive a newer vehicle every few years and the monthly cost will be more affordable than purchasing a car. However, because you do not own the vehicle, you are not benefiting from any equity in the car once you turn it in.
If you feel that your only option is leasing since you do not have good credit, it would be a good idea to consider a bad credit or subprime dealership.
What Is ‘Subprime’ Auto Financing?
A subprime automotive loan is a loan that is essentially used to finance a car, truck or SUV to people with low or below average credit scores. These subprime loans carry higher than normal interest rates compared to the prime loans that are offered to better-credited individuals. In addition, these loans may also come with prepayment penalties; just in case the borrower chooses to pay off the loan at an earlier date. Furthermore, subprime loan borrowers are more than often willing to pay higher fees and rates associated with these types of loans. From 2001-2004, the subprime automotive loan industry has expanded nationwide. This has led to many financial institutions offering riskier loans and terms to businesses and people. At this time, financial companies were so flush with money that they tried to seek higher returns by charging higher interest rates to subprime borrowers. Reach out and contact the Financial department at Mikes Auto Sales to learn more about how we can help you drive away in the car, truck or SUV that you have been searching for!
How Do ‘Subprime’ Automotive Loan Works
There is no official benchmark score for a qualifying subprime borrowing status, but the general rule of thumb is that the borrower’s credit score has to fall below a FICO score of 650 but be above 450 to be considered subprime. (FICO scores range between 300 and 850.) To sum it up, fewer than 20% of Americans fall below a 600 FICO score; 22
Buying a Used Car With Bad Credit in Salinas, Ca?
Considering buying a used car but fear that your credit score may stop you from getting a loan? Come by
to Mikes Auto Sales in Salinas, Ca, Where we say ‘Yes’ to you getting in the car of your dreams. Whether you have good credit, bad credit, or even no credit, we will work hard to get you in the car you are looking for. Stop by today to check out our amazing selection of Cars, Trucks and SUVs for Sale in Salinas, Ca!