What is the average fico score in Alaska? It’s 674, yet even so, 5% of the state’s residents have credit ratings of 500 to 549.
Traditional banking institutions and loan providers, sadly, will not grant auto financing to consumers that have low credit scores.
You may be wondering how these dealers can provide car loans in situations where regular loan providers can’t. You’ll find that the majority of used car dealerships don’t do financing onsite. Instead, they have third-party creditors to manage the financing part of the equation. After you get approved, the financial institution in reality buys the car, and your monthly payments go to the loan company. Buy here pay here car dealers, in contrast, offer automobile loans in house, meaning they are not subject to the banking institutions and conventional financial institutions. Of course, this makes it possible for them to cater to a wider array of buyers.
Bad Credit Automotive Finance vs In House Car Loans
Keep in mind that buy here pay here dealerships aren’t the one and only option for folks with poor credit. Because, of course, buy here pay here dealers do have some drawbacks:
- Expensive Interest Rates
- Larger Deposits
- Minimal Opportunity to Restore Your Credit
Why not let us uncover which type of financing is most suitable for your needs? Just complete our simple web form, and our cutting-edge software will find the automotive dealer or loan company who best fits your needs, considering your credit score, location, and down payment.
Budgeting For Your Car
Alaska residents take home a typical yearly income of $43,972. You should never dedicate more than 1/10 of your yearly salary on automobile payments. In Alaska, this is $4,397. But remember, you need to look at how much your insurance will cost ($684 per annum in AK), as well as fuel prices ($3.39 per gallon as of ’08 and on the rise). Please don’t dedicate any more than this; if so, you’ll end up stretching your budget into the red zone.
Pre-Owned Cars You Don’t Want to Buy
When it comes to pre-owned cars, you might want to avoid a few cars. Here are the most stolen cars and trucks in Alaska.
- 1994 Chevrolet Extended Cab 4×4
- 1991 Ford Explorer
- 1989 Chevrolet 4×4 Pickup
- 1997 Dodge Ram Pickup
- 1982 Ford F150 Pickup