Welcome to Motor City's Finance Center
 

Here you will find answers to your questions regarding budgeting for an auto loan. Read brief descriptions of our blog articles relating to this aspect auto purchasing process and click to read more. If you have any questions that are not answered here please do not hesitate to call us at 603-692-8700. We hope you find the answers you are looking for.

3 Common Misconceptions about Budgeting for an Auto Loan

Everyone has a budget. Everyone. Whether you are purchasing a t-shirt or a used car, you will have probably set specific parameters for how much you are willing to spend. The parameters you have set are almost certainly related to your monthly income, your saving and spending habits, your monthly bills outlay, and your comfort levels in taking on debt. The similarities of buying a used car and a t-shirt end shortly into the discussion, unless you are paying cash for a vehicle and then your budget is some fraction of the cash you have in your bank account. While you are budgeting, avoid making the following mistakes.
 

How Much Money do I Need to Put Down on a Bad Credit Auto Loan?

The question of how much money is required to get approved for a bad credit auto loan, is one frequently asked. For as many times as this question is asked, there are as many different answers. As someone who prefers to deal in averages, my best response to this question is it depends.

 

What happens if I pay more on my auto payment?

Especially on bad credit auto loans, the interest you will pay if you pay exactly the amount on your contract is astronomical. Below I will run you through a couple scenarios using a typical bad credit auto loan interest rate (17.99%), but download Motor City's Loan Calculator to adjust this better to your situation.

Do I need to put money down? Get approved on a bad credit auto loan

The short answer is yes, but sometimes no. On a tight budget it is always difficult to part with $500 or even $1000, even if you have the money in the bank. However, there are a couple of reasons a bank would require money to down on an auto loan, and by understanding these reasons it will become apparent how you may get away with not putting money down or at least figure out how much you might need to put down.