Bad Credit Auto Loans in Florence (AL)

Here at Alabama Auto Finance, we’re revolutionizing the approval process. More and more dealerships, banks, and other lenders have whole departments devoted to online approvals, and we can get you approved straight from your computer. Here is how it all works:

  1. Take a minute to fill out our secure application.
  2. Keep track of the status of your application through our approval center.
  3. Consult your finance specialist about your rate of interest and terms.
  4. Sign your agreement.
  5. Finally, select your vehicle from a nearby dealer.

You too can be one of the many Florence residents who’ve followed these steps to finance the car they want! Apply Online!

Have you got a credit score of 620 or less? Bad credit is rarely an issue. We have lenders and dealers who work with low credit, and they would love to grant you the loan you need. A down payment and proof of income is often expected for a bad credit car loan in Florence; however, most people who apply through us are approved right away. And, as you may know, a paid-as-agreed auto loan will improve your credit scores. So let us find you a dealer that finances bad credit – online!

How Much Am I Eligible to Borrow?

The table below shows multiple loan amounts, based on a monthly income of $1,789, the average in Florence. These sums are simply estimates. You may be entitled to a greater or lesser amount, depending on other factors. Speak to a vehicle finance specialist for additional information.

Credit Income Factor Loan Amount
Great Credit 10 $17,890
Fair Credit 9 $16,101
Temporary Bad Credit 8 $14,312
Poor Credit 7 $12,523
Terrible Credit 6 $12,523

Simply because you can borrow such an amount, doesn’t mean you should. A smaller loan is a wise idea, because you will pay less interest, and your payment will be more affordable.

Buyers with good credit can typically buy a car without a down payment. If you have bad credit, however, your dealer may want you to supply a payment in advance. When dealing with subprime credit, lenders are worried about the Loan-to-Value Ratio, or LTV. This is the amount borrowed in relation to the wholesale value of the vehicle.

Loan Amount Vehicle Value Loan-to-Value
$7500 $10,000 75%
$10,000 $15,000 67%
$20,000 $25,000 80%

Most lenders and dealers who work with bad credit prefer LTV ratios of less than 100%. Because the lender has less invested in the vehicle, they are in a better position if the vehicle has to be repossessed – a bona fide risk when financing people with non-ideal credit. What’s promising is, as the economy gets better, more lenders and dealers should be able to approve car loans in Florence with no money down.

Simply indicate your down payment amount when you submit your application, and our platform can often find you a dealer or lender who wants to get you in the driver’s seat, regardless of whether or not you can put money down.

Buy Here Pay Here Dealerships in Florence

Buy here pay here financing is sometimes known as your job is your credit, tote the note, in house or no credit check financing. Shoppers who have been unable to get approved for a loan because of seriously bad credit often turn to dealerships like these. They finance people with problems like bankruptcy or repossession within the last year.

We recommend that you eschew buy here pay here car lots, going instead with a bad credit car loan online. Apply online – it’s fast and free.

Credit and Income: Florence

There’s more to the approval process than just your FICO score. Loan companies check your ability to pay (income), employment history, and history of credit.

Here are some average statistics for residents of Florence.

  • Average Income: $1,789 Per Month
  • Average Monthly Payment: $197 (11% of Income)
  • Ideal Car Payment: $143 to $179 (8%-10% of Income)

Florence’s Credit Spectrum

If you have subprime credit, you’re not the only one. This table shows the estimated number of Florence residents at each credit tier.

FICO Score % of Population Residents
300-499 2% 1,196
500-549 5% 2,990
550-599 8% 4,784
600-649 12% 7,176
650-699 15% 8,970
700-749 18% 10,764
750-799 27% 16,146
800-850 13% 7,774

Your credit score will primarily determine your annual percentage rate. However, provided that you have sufficient income, we can normally find a lending company for you, even if you have below-average credit.