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High interest rate auto loans to rebuild credit

Anytime you look online for tips on buying or financing a car, the articles you see oftentimes focus on how to find the lowest interest rates. These articles are catered to people with good-to-excellent credit. But what happens if your credit isn’t so good?

If you’ve had credit challenges in the past then you are going to pay a higher interest rate than most other people, that’s just how it is and there is no getting around it (unless you spend years rebuilding your credit before you buy a car). I have had people sit right across from me and tell me that they are not going to pay 29.99% interest on a car loan, and I completely understand where they’re coming from, I wouldn’t want to pay that much either. The truth is, I have had to pay high interest rates like that multiple times. The first time was when I had absolutely no credit and the second time was when my credit was destroyed. Both times the only banks that would take a chance on me were banks offering 29.99% interest. 


Many people see these high interest rates and think that it’s the dealership who is just ripping them off. I can tell you right now that it’s not our fault, we are at the mercy of the banks we deal with. Oftentimes we have to pay them in order to get your approval processed. What can you do if you’ve got challenged credit but need a car? What is the most fiscally responsible way to go through the car-buying process? For starters, see if you’ve got a trusted relative or friend who will cosign for you. A cosigner who has decent credit is a great way to get a lower rate. 


If you have no way of getting a lower rate with a cosigner then you’ll need to be smart about your decision. Remember that this isn’t going to be your dream car and any decent car that will last a few years will do the trick as this is just a temporary fix while you build your credit back up. A loan at 29.99% interest will likely be for about 4 years. You should look at this as a 2-year loan. What I mean by that is you should plan on paying double every month to pay off this high interest loan much faster. Paying double on a 29.99% loan means you’re only going to end up paying 14.98% interest. 


Remember, YOU are in control, not the bank. You are in control of how quickly your loan gets paid off. The longer you take to pay it off, the more in interest you will end up paying. Also think of this high-interest loan as a test. If you can pass this test then the next time you need help from another bank or finance company they will trust you more. More trust means a smaller interest rate. So use these high-interest loans to your advantage to rebuild your credit and gain more trust with other lenders for your next car when the time comes. 

Taking the fear out of auto financing

Buying a car can seem like a daunting task for most people. It’s a major purchase and generally requires a long-term commitment. Getting financing for a car just adds to that stress and is oftentimes the part of the car-buying process that intimidates most people. The stress of obtaining financing is much worse whenever you’ve got past credit issues and sometimes just the anxiety of submitting a credit application can be enough to make you not want to do it at all.

Have you ever filled out a credit application, whether online or in person at the dealership? Did you hear back from that dealership? Depending on your credit situation it’s likely that you never heard a peep from them. A situation like that forces you to sit back and question what it is about your past that is holding you back from buying a car. Believe it or not, this is extremely common. Sadly, most dealerships do not have the ability to overcome certain credit challenges that many people face.

If you’ve got credit challenges that other dealerships have failed to overcome then you’re in luck! Maple Leaf Motors has partnered with a local lender who has a program that just about anybody can qualify for, regardless of derogatory marks on your credit. In fact, the lending process is so simple that you can see if you qualify by asking yourself 3 simple questions:

  1. Do I have a valid driver’s license?

  2. Do I currently have income?

  3. Have I lived in the area for at least the past year?


…it’s that simple! The credit challenges from your past likely do not matter if you’re able to answer yes to those three questions above. Well, what about a down payment? This lender does not require a large down payment. In fact, some applicants may be approved with no down payment at all!

This is not some fly-by-night company. This local lender was founded in 1922 and operates nearly 30 locations across Washington, Oregon, Nevada, and Idaho. With this local lender, and the knowledgeable staff at Maple Leaf Motors, we are confident that we can take the fear out of lending and help ease your worries about yet another rejection.

Fill out an online credit application today so we can help get you back out on the road again!

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