A lot of people think that credit isn’t really of importance with auto loans in Florida. This is true to a degree, but it doesn’t mean that anybody is able to get a loan. Rather, it means they have more flexible terms and conditions, in return for which you generally pay a higher interest rate. Let’s take a look at some commonly asked questions about auto finance in Florida for people with bad credit.
FAQ for Auto Loans in Florida
- Can I get a loan if I have a repossession or bankruptcy?
This depends entirely on the lender. Usually, however, lenders will consider anyone who hasn’t had a repossession or bankruptcy in the past year. That said, there are also some that want to see three years of good financial behavior.
- How long do I have to wait before I can refinance?
A lot of people take out a bad credit loan to rebuild their rating and then refinance it later. Sometimes, this can be as quick as 30 days. That said, it is normal to have to keep a loan for between three and 12 months.
- Is it possible to (re)finance any model of vehicle?
Usually, there are no stipulations in terms of the make and model of cars that can be (re)financed. However, there are usually limitations based on the age and the condition of the car.
- Is it possible to refinance on a vehicle when there is no equity on it?
Usually, when someone is in negative equity on their car, it is impossible to refinance it. Upside down situations, as they are known, are too risk for lenders. In very rare occasions, they will allow it, but you will have to pay a hefty interest rate for it.
- Is it possible to get finance on a vehicle registered in a different state?
Most lenders will not agree to finance a vehicle that isn’t registered in the state in which you reside.
- How much do I have to earn to get a loan?
This depends entirely on how much you want to borrow. That said, an income of $1,600 a month minimum is commonly required.
- Can I get finance if I am behind on my other payments?
Usually, you will not be granted any type of finance if you are currently behind on other bill payments, and particularly if you are behind on loans, credit cards, or mortgages.
- Can I refinance for more than I currently owe on my loan?
It is not common for lenders to do this, but there are some exceptions. If you have a lot of equity in your vehicle, they may be willing to borrow you slightly more and enable you to “cash out”, as it is known. However, that is rare.
- Will my credit be damaged if I refinance?
No, it will not. In fact, it will look as if you repaid the previous loan and, if you held that loan for at least six months, you will get a positive mark on your credit file.