Utility
D.E.L. Motors - Bad Credit Financing
At D.E.L. Motors, we have been the premier hometown dealer for over 40 years, and we welcome all of our neighbors to visit our Junction City dealership when looking for a new vehicle. Even if you have less than perfect credit, our in-house finance experts know exactly which lenders to speak to on your behalf to secure a sub-prime loan for your new vehicle. Our goal is always to help our customers select the perfect vehicle to meet their needs. And then secure the financing to purchase their new car,truck, or S.U.V. and begin rebuilding their credit. So don’t let any financial issues stop you from getting the safe and reliable transportation you need. We can help you overcome past challenges like:
You Can Apply Online
It can be frustrating and even embarrassing to know that you need transportation, but your credit will be a significant challenge to overcome; however, when you work with the D.E.L. Motors family, we understand that things can happen that just take some time to overcome. That is why we are happy to work with customers who have bad credit or even no credit. You can start the process quickly and from the privacy of your own home using our online credit application. We know that once you have the application completed for pre-approval, it will be much less stressful when you come by our dealership to select your new vehicle.
What Lenders Will Need To Know
When you complete an online loan application, the D.E.L. Motors team does all the leg work for you. We present your information to several lenders to determine who can offer you the best deal for your new car. As we are working with our various lenders, they will want to gather some basic information about you that can include:
- Your credit score
- Your credit history
- Your debt to income ratio
- An approximate loan amount
- Any explanations for past credit challenges such as a loss of employment or long-term illness
The Benefits Of Working With D.E.L. Motors
It can be hard to face and overcome credit challenges. As you are taking this next big step in rebuilding your credit or beginning to establish your credit, it is helpful to know that you have the support of family. When you shop for your new vehicle at D.E.L. Motors, you have our entire family working to help you succeed. The Lancer Family has been a part of the Junction City community for over 100 years, and a lot has changed in that time. Our dedication to taking care of our customers will never change. We are here to help every customer join the D.E.L. Motors family regardless of their credit or budget. Our team of experts will help you with every step of the process today and in the future when you need vehicle service or are ready to purchase your next car.
Frequently Asked Quesitons About Financing a Used Vehicle with Bad Credit
How does bad credit impact my vehicle loan?
In many cases, it can require the borrower to pay a higher interest rate for a loan when they have poor credit. In more extreme cases, the buyer will need to use a lender who specializes in loaning to customers with lower credit scores. In these cases, the person must still have a credit score of about 500 to secure the loan. Some lenders will also require a buyer with bad credit to have a co-signer on the loan.
What is the purpose of a co-signer?
If you have a poor credit score, you can have a close relative co-sign the loan to increase your potential to get it because of their added income backing it. It is also helpful when the co-signer has good credit as they are also being held responsible for making the loan payments, and their credit history is not tied to that loan, which adds security for the lender.
How can I increase my bad credit score?
If you are interested in buying a vehicle at D.E.L. Motors, we welcome you to stop by to review the inventory from your home in Topeka or Solomon. While your credit score might not be the best, our team is skilled at securing loans even when the customer has faced financial issues. However, we also understand if you would prefer to increase your credit score before making that purchase. If that is your goal, you need to:
- Reduce your current debt as much as possible – even a few extra payments to pay more than the minimum amount due will make a difference
- Be sure to make all loan and debt payments on time – do not forget that utility and rent payments made late can impact your credit score
- Do not apply for new credit cards
- Do not request too many credit score checks which can impact the score in a negative manner
What actions can negatively impact my credit score in the months before applying for a vehicle loan?
- Filing for bankruptcy
- Having a tax lien
- Late rental payments
- Credit card balance transfers
What will help me get the vehicle I want, even with less than perfect credit?
In addition to the steps already mentioned to increase your credit score, you can increase the amount of your down payment to reduce the amount of the vehicle loan. A larger down payment will help keep your monthly loan payment as reasonable as possible while also decreasing the loan amount to ensure you have equity in the vehicle in the event that you need to sell it to ensure you are not upside down and still have a balance due on the loan once the vehicle is sold.
Can getting a bad credit loan financed help my credit?
Securing the loan will not immediately increase your credit score. However, if you continue to make the loan payments on time, that will be reflected in your credit score.
Can I refinance a bad credit loan?
It is possible to refinance your bad credit loan. However, most people will only undertake this process once they have made a series of on-time loan payments and taken other steps to increase their credit score. However, by increasing their credit score and creditworthiness, they are able to refinance the loan at a better interest rate and save money over the course of the loan compared to continuing to pay the increased interest rate.