Christ haven donations

Car loans for low income people

Many Americans rely on vehicles to get around, and financing one can be expensive, especially if you have bad credit. If your income is low compared to an average household of your size and you also have bad credit, you may still be able to get approved for financing. Let us share with you some tips on how you can get a car loan as a low income person.

How to qualify for a car loan on low income

When you have bad credit and low income, you should first try to get pre-approval from your bank or credit union. If they turn you down, the next step is to find a finance dealer or buy here, pay here.

Each will have different income requirements, but subprime lenders who work with special financing dealers generally require a minimum monthly income of $1,500 to $2,000 before taxes from a single source. The minimum income requirement can vary more widely to Buy Here Pay Here Lots.

With that in mind, these four tips can help low-income people get a car loan:

  1. Research vehicles – Find out what the models you are interested in cost and find out what owners and experts like or dislike about them. Also, be sure to check security clearances and recalls.
  2. have a budget – When researching different cars, you should consider a budget. By using our Car loan monthly payment calculator, you can get an estimate of how much you will pay each month. Note that the calculation does not include insurance, tax, title, and license fees, so be sure to account for these estimates.
  3. Save for a deposit – You usually need a down payment to get approved for a bad credit car loan, and the bigger the better. Most subprime lenders require a minimum down payment of $1,000 or 10% of the sale price of the vehicle, whichever is lower.
  4. Consider a co-borrower – If income is an issue, you may want to consider adding your spouse as a co-borrower on the loan. You can combine income with a co-borrower who is a spouse, which can help you qualify when you couldn’t on your own, and maybe even unlock access to better terms and rates.

Other Low Income Car Buying Options

What if you know you can’t qualify for a car loan from a subprime lender? You will have more difficulty finding financing, but all hope is not lost since it now depends on your income situation.

If so, what you can do is research your state’s assistance programs and grants that fund families who need a car. You can also check out programs that give donated vehicles to those who don’t have the money to buy one on their own due to a disabilityunemployment or low income.

Let us help you find a dealer to work with

If you’re not sure if you have enough income to qualify for a car loan, or if you just haven’t found the right dealership to work with, we want to help.

Auto Express Credit helps people find financing through our nationwide network of auto financing dealerships. Our partner dealers are experts in helping consumers in unique situations, such as those with low incomes or those with bad credit.

We’ll work to connect you with a dealer near you if you start the process by filling out our quick free form car loan application form.