Bad Credit Auto Loans in Tuscaloosa (AL)

Looking for a car loan in Tuscaloosa or the surrounding area?  Look no further. Here at Alabama Auto Finance, we make the finance process fast, friendly, and free. Don’t waste your time fooling with office appointments, paper applications. We have an online application placement platform that can match you with a lender or dealer ready and willing to fund your loan. The benefits of our platform are significant:
auto loan

  • Comprehensive Lender Network
  • Easy Application Process
  • No Fees or Obligations
  • Zero Down Payment Necessary
  • Good or Bad Credit Accepted
  • Convenient Status Updates

Just apply online, and we’ll work to get you approved from a dealer or lender who suits your needs.

Bad Credit Car Dealerships in Tuscaloosa

Bad credit can be a roadblock to financing, but not when you apply through us. If you were to go from dealer to dealer, completing applications, you’ll probably get turned down once or twice. We offer a better alternative, in that you can apply online, and we’ll find a lender in Tuscaloosa who can get you in the driver’s seat, even if your credit isn’t perfect. Many finance companies require individuals with less-than-perfect credit to provide a down payment, and your rate of interest will be higher than if you had stellar credit. However, we strive to place you with a dealer or finance company that can offer you the most competitive rates in Tuscaloosa and beyond. Most qualified applicants are approved within minutes. It’s a simple process. Simply apply online, and we’ll find you a bad credit car loan in Tuscaloosa that won’t cost a fortune in interest.

Auto Loans for Tuscaloosa’s Student Population

auto loanAre you a student of the University of Alabama, Stillman College, or Shelton State Community College? We may be able to help you secure the car loan you need. As you know, Tuscaloosa has a large student population, many of whom have not had the opportunity to establish more than the most minimal history of credit. Obviously, this lack of credit presents a challenge when trying to finance a car. Lenders tend to view undergraduates as a credit risk, since they represent something of an unknown entity.

Fortunately, we do work with dealers and lenders who work with students of UA and other area colleges. That said, there are several ways in which students can make the most of their credit profile and application:

  • Responsible use of credit cards:  if you have a credit card, keeping the balance well below the limit and making more than the minimum monthly payment will show lenders that you are a responsible borrower.
  • Commitment to a down payment:  if you can provide a down payment of at least 10%, you will impress your lenders with your commitment to the lending agreement.
  • Income or Co-signer:  in order to qualify, you will either a) an income of $375 per week before taxes, or b) a parent or other person with established credit to co-sign for you.

Credit Restoration through Financing

If you have below-average credit, you’ll probably be approved by a dealer or lender in Tuscaloosa that specializes in subprime credit. Companies like these will report your debt repayment to the credit agencies. This is great if you want to re-establish your credit. After all, a loan for a vehicle gives you the opportunity to create a long history of timely payments. Gradually, this will increase your FICO score, making you a more appealing candidate for everything from future lenders to employers. The key is paying off your loan as agreed, through on-time, in-full monthly payments.

Determining How Much You Can Borrow

The table below depicts how much you can borrow, based on a monthly income of $1,196, the average in Tuscaloosa. These figures are simply estimates. For your own estimate, take your monthly income and multiply it by the appropriate “income factor.” You may qualify for a larger or smaller sum, depending on other factors. Speak with an auto finance specialist for details.

Credit Income Factor Loan
Good Credit 10 $11,960
Decent Credit 9 $10,764
Slow Credit 8 $9,568
Bad Credit 7 $8,372
Terrible Credit 6 $8,372

Down payments can be paid in cash or trade equity, and typically range from 5-20% of the vehicle’s price. They are normally required of borrowers with a subpar history of debt payment. At this point, the Loan-to-Value ratio becomes important. Divide the amount of the loan by the wholesale value of the car or truck in question. This is the LTV.

Loan Amount Vehicle Value LTV
$12,000 $15,000 80%
$15,000 $20,000 75%
$17,500 $22,000 79%
$20,000 $25,000 80%
$20,000 $30,000 67%

Most subprime lenders prefer lower LTV ratios. Because the lender has less tied up in the vehicle, they are in a better position to recoup their losses if the vehicle has to be repossessed – a serious risk when financing people with non-ideal credit. That isn’t to say dealers don’t ever approve people with no money down.

Apply online, and enter a zero in the down payment section. We’ll match you with a lender or dealer willing to finance your purchase, no down payment necessary.

In House Financing Dealers in Tuscaloosa

If you’re thinking of working with one of the buy here pay here dealers in Tuscaloosa, thanks to bad credit, keep in mind that a down payment will probably be required. Dealers like these finance people that have been rejected by other finance companies. Without a doubt, the rates are high, but there are a lot fewer roadblocks to credit acceptance.

It’s usually best to eschew such dealers, going instead with a bad credit car loan online. Submit your application – let us get you approved.

Tuscaloosa-Specific Financial Profile

Listed below are some average statistics for Tuscaloosa residents.

  • Average Salary: $14,353 Per Annum
  • Average Car Payment: $132 (11% of Income)
  • Ideal Car Payment: $96 to $120 (8%-10% of Income)

Consumer Credit in Tuscaloosa

Next we’ve a breakdown of Tuscaloosa’s population by credit score. These are just estimates, but they should give you a sense of where you stand.

FICO Score % of Population Residents
300-499 2% 1,974
500-549 5% 4,934
550-599 8% 7,894
600-649 12% 11,841
650-699 15% 14,801
700-749 18% 17,762
750-799 27% 26,642
800-850 13% 12,828