If you have bad credit, you may think the MAZDA finance help you need for a car or SUV is out of reach. Think again; when you choose a used car from a dealership like Tumminia Mazda, you have more options than you might have realized. If you’re still building a credit history, or if it’s in a state of disrepair, there are compelling reasons to stop by our dealership for a test drive.
MAZDA Finance 101: Save Your Credit With a Pre-Owned Vehicle
A pre-owned vehicle typically costs significantly less than a new one. If your credit is bad, your chances of approval are inversely proportional to the cost of the car, and your interest rates will be higher.
Pre-owned Mazda vehicles’ lower costs come with advantages.
- You can enjoy lower monthly payments even with a lower down payment
- You are perceived as a lower risk, increasing your chances of securing a loan
- Because you’re financing less, you’re likely to pay less over the lifetime of the loan
- Lower monthly payments make it easier to pay on time
- Timely payments, in turn, help to raise your credit score
Some of the same considerations will apply regardless of your credit history or score. For example, a longer loan term can be tempting because the payments are lower; however, this will cost you more because of the interest charged. Similarly, a substantial down payment is still the best way to keep monthly payments low.
Improving Your Credit Score
You can also take steps to improve your credit score before applying.
- Identify and address negative items on your credit report, especially if they’re erroneous
- Avoid applying for new lines of credit before taking out a car loan
- Pay down existing debts to improve credit utilization and raise your credit score
If you have questions about this process, from finding a quality used car to qualifying for the financing that pays for it, visit Tumminia Mazda. We’re here to help you make choices that will serve your transportation and financial needs alike.
