If you’re in the market for a new or used car and don’t have the best credit score, you may be worried about qualifying for an auto loan. We have subprime financing available here at Team Ford to ensure that you get the loan you need regardless of your credit. Here’s the answer to the question “what is subprime financing?”:
How Subprime Financing Works
When it comes to an auto loan, you might require subprime financing if you present a higher risk than the typical borrower. This is usually the result of financial missteps in the past, such as issues paying off a credit card or using too much of your available credit.
Since there is more risk with subprime financing, these auto loans will generally have higher annual percentage rates, or interest rates. Other than that, the financing will work the same as standard financing.
Benefits of Our Subprime Financing
The primary benefit of subprime financing is that it helps you qualify for an auto loan and purchase the car you want, regardless of your credit. If you were to have a low credit score and subprime financing weren’t an option, you would need to pay the full asking price for the car upfront.
Team Ford’s subprime auto loans also have a few other key benefits that can help you financially. First and foremost, we’re very flexible with loan terms, which means you can get an auto loan with a monthly payment you can afford. If you want to pay your loan off faster and pay less in interest, we can set up a loan with a shorter term. If you need a lower monthly payment, we can set up a loan with a longer term.
When you choose our in-house financing solutions, we report all your monthly loan payments to the credit reporting bureaus. Payment history is one of the most important factors in regards to your credit score, and as long as you make your monthly payments on time, your credit score will go up. In fact, as you pay off these loans, your credit score increases, which will make it much easier to apply for loans in the future, such as for a mortgage!
Although it’s always good to improve your credit score as much as possible before you apply for an auto loan, if you don’t have good credit, subprime financing is a great option. We welcome you to contact us at Team Ford to get any of your financial questions answered, or you can apply today for financing and get pre-approved for financing.