Get Approved Today: Understanding Financing Options for Every Credit Type

Buying a car usually starts with one question: What can I afford?

For some people, financing is pretty straightforward. For others, it can be harder to know where to begin. Maybe your credit has taken some hits, you have a limited credit history, or this is your first time applying for an auto loan. You may also be unsure about how much you should put down or what your monthly payment will look like.

At Hi Lo Auto Sales, we work with a network of lenders and offer financing for all credit types, including first-time buyers and customers with bad credit. If you are ready to get approved today, the first step is understanding what financing may look like for your situation and what you can realistically afford.

Start by Finding Out What You May Qualify For

It is easy to assume that your credit history will prevent you from getting a car loan.

Maybe your credit score is lower than you would like. Maybe you have missed payments in the past. Or perhaps you have not used credit long enough to build much of a history.

Those situations do not necessarily mean you should stop looking. Income, financial information, and lender requirements can also factor into a financing decision.

Rather than making assumptions and guesses about your ability to get a loan, you can start out by applying to see what options you might have.

Since we’re a Capital One Premier Partner, our online financing application lets you get started from home. You can apply on your own or with a co-borrower, depending on your circumstances.

What If You Have Bad Credit?

It may be difficult to shop for a vehicle when your credit is bad, particularly after you have been rejected for financing before.

It is understandable to worry that applying again will lead to the same result. However, your present financial situation could be better than the last time you applied, and the criteria of other lenders may differ as well.

We work with a network of lenders and accept applications from customers with different credit backgrounds, including those with bad credit.

But it does not mean that each application will be accepted or that everyone gets the same terms. It all depends on your personal financial standing and the requirements of the lender.

Buying Your First Car? Start With the Numbers.

First-time buyers often have a different set of questions.

You may not know how much you should put down, how loan terms work, or what a reasonable monthly payment looks like. You may also be focused on the vehicle payment without realizing how the loan term or interest rate affects the total cost.

It’s a good idea to get familiar with all of this information.

We have a car loan calculator that can help you estimate payments as you compare different loan amounts and terms. It is not a guarantee of what your final payment will be, but it can give you a useful starting point.

When you apply, we can help you understand loan terms, interest rates, and monthly payments associated with your financing.

Look at More Than the Monthly Payment

Before choosing a vehicle, consider how much you will borrow, the interest rate, the loan term, and what the payment means for your monthly budget. A monthly payment is easy to focus on when you are shopping for a car, but it doesn't show the loan's full cost.

Also, it is important to think about other costs that come with owning a car, such as insurance, gas, maintenance, and unforeseen repair costs.

The Loan Is Only Part of the Decision

Financing approval does not automatically imply you need to choose a particular vehicle.

You still want to make sure the car itself makes sense for you. Look at its mileage, maintenance history, features, condition, and price. Take the car for a test drive and ask questions about anything you are unsure about.

You are making two decisions at the same time: how you will pay for the car and whether the car is worth buying.

What Should You Have Ready Before Applying?

Having your information ready can help ease the process.

You will generally need information such as:

Your current address
Work information
Financial information
General personal information
Co-borrower information, if applicable

It is also a good idea to prepare a budget before you go car hunting.

You need to calculate how much you can afford per month instead of picking a vehicle first and then adjusting your payments to suit it.

Start With What You Know

Starting with an application can give you a better idea of what financing may look like for your situation.

At Hi Lo Auto Sales, we have experience dealing with various credit situations and lenders. After you get an idea of how your financing might work, you can begin looking into vehicles that fit your needs and your budget.

We also have a general financing application online or contact us if you have questions before applying.