There are many options when it comes to paying off your vehicle, many of which may not be the best choice for your current lifestyle. At Abbotsford Hyundai, our goal is get you in the Hyundai you want at a cost that won’t break your bank. We understand that everyone is in a different credit situation and our team of financial experts is here to help.
So whether you have great credit, bad credit or no credit and need a car loan, you can rely on us to help get you in your next Hyundai! At Abbotsford Hyundai, our financial experts will work with you to work out a contract that is feasible for your preferred payoff time and budget.
SUBPRIME AUTO LOANS
Subprime auto loans are a forgiving alternative that allows people with bad credit or non-existent credit to finance vehicles at an affordable monthly principal. These kinds of bad credit car loans are only available to those who are typically inhibited from getting approved for a regular loan.
Although subprime auto loans provide more freedom to those with bad credit, it comes with a higher interest rate since people who need these loans are typically seen as a “riskier investment”. Since bad credit car loan borrowers are restricted by their credit or current financial statuses, the contract lengths can be much longer than regular loan periods as well. A regular loan period typically lasts 2 to 3 years on average, whereas a subprime auto loan can last up to 10 years before the vehicle is paid off entirely.
Bad credit car loans usually end up costing more altogether at the end of the term because of the longer payoff period and higher monthly interest rate. However, you always have the option to pay more than your monthly principal to reduce the amount of interest you’ll ultimately end up accumulating.
CAR LOANS IN BRITISH COLUMBIA
Although it may seem counterintuitive, taking out a subprime auto loan can actually benefit your credit score. Getting approved for and consistently paying off your monthly payments help rebuild your credit by showing that you can take out another loan and responsibly pay it off.
It is not impossible to get approved for a car loan with no credit or bad credit with us at Abbotsford Hyundai. For many years, we have helped people get approved for no credit car loans and bad credit car loans in Abbotsford, Mission, Chilliwack, Langley or Surrey. Let us help you get in the car you’ve had your eye on while you work on building your credit back up! Learn more about our financial services or contact our experts to get started today!