Auto Loans in Philadelphia (PA)

From credit scores to down payments, financing a car in the Philadelphia area can be a stressful process. Fortunately, we’re here to guide you from application to approval. We have relationships with lenders and dealers in Philadelphia and across Pennsylvania who want to fund your loan – this week! This is how our system works:

  1. Apply online.
  2. Log in to your inbox for your approval status.
  3. Once your application has been placed, speak with your dealer or lender to finalize your documentation.
  4. Go purchase your vehicle from a nearby dealer.

auto loan PhiladelphiaYou too can be one of the many Philadelphia residents who’ve followed this system to finance the car they want! Just go here to submit your online application. It’s fast, safe, and obligation-free. You could be driving your new car to a Phillies or Eagles game in no time!

Credit rating of 640 or less? That is typically deemed subprime or bad credit, but our service is a great option for applicants who need a bad credit auto loan in Philadelphia. There are several main credit tiers when it comes to auto financing, and we have lenders that service each of them. Most lenders want people with credit problems to provide a down payment; however, most of our clients get approved within minutes. You’ll probably be approved by a bad credit dealership or subprime auto finance company. Companies like these report to the credit agencies. This is a prerequisite for rebuilding your credit.

How Much Do I Qualify to Finance?

The table below shows you how much you can borrow, given a monthly income of $1,512, the average in Philadelphia. These sums are just estimates. You may be eligible for a different amount. Speak with your vehicle finance specialist for more information.

Credit Income Factor Loan Amount
Excellent Credit 10 $15,120
Fair Credit 9 $13,608
Subprime Credit 8 $12,096
Bad Credit 7 $10,584
Horrible Credit 6 $10,584

To find out how much you can borrow, multiply your pre-tax monthly income by the applicable income factor. Just keep in mind, this is a maximum - not recommend – amount. Americans have a tendency to bite off more than they can chew when it comes to credit and loans. Ideally, you want a vehicle that serves your needs without breaking the bank.

Philadelphia Auto Loans, No Down Payment?

A down payment is recommended because it lowers your payment per month, the amount of interest paid, and problems with being upside down. These are the suggested down payments for new and pre-owned vehicles.

  • Pre-Owned Vehicles: 10%
  • Brand New Vehicles: 20%

Of course, most dealers accept down payments in the form of cash or trade. That means you may be closer to having the down payment you need than you expected.

Philly Buy Here Pay Here Lots – Bad Idea?

As you may know, a “buy here pay here” lot engages in what is known as in-house financing. Whereas most dealers simply arrange financing through affiliate banks and finance companies, a BHPH dealer acts as the sole source of funding for the loan. This means they have the power to approve and decline applicants, and they specialize in helping consumers whose credit has been rejected by other lenders. The rates are inflated, as are the down payments. They also don’t help their clients re-establish their credit. However, they have one sole advantage:  there aren’t many hurdles to credit acceptance.

Credit and Income: Philadelphia

Credit ratings are only part of the equation. Loan companies consider your ability to pay (income), history of employment and residence, and individual credit history. Here are some average stats for residents of Philadelphia, The City of Brotherly Love.

  • Gross Salary: $18,140 Per Annum
  • Average Monthly Payment: $166 (11% of Income)
  • Ideal Car Payment: $121 to $151 (8%-10% of Income)

If you have bad credit, you aren’t the only one. This table shows how many people in Philadelphia are in each credit tier.

FICO Score % of Population Residents
300-499 2% 30361
500-549 5% 75902
550-599 8% 121444
600-649 12% 182166
650-699 15% 227707
700-749 18% 273249
750-799 27% 409873
800-850 13% 197346

Your credit rating will have a significant effect on your rate of interest, but as long as you have sufficient income, we can typically find someone to finance you, even when you have less-than-perfect credit.