Bad Credit Auto Loans near Alexandria, VA

Bad credit scores can make it difficult to get a loan for a vehicle. However, we at Pohanka Lexus can help you lock in an interest rate regardless of your credit level. Read through this overview to learn how you can change your financial outlook by using an auto loan at our dealership. 

Why Is My Interest Rate So High?

According to the Federal Trade Commission, bad credit correlates to high risk. In other words, financial institutions like loan companies give higher than average interest rates to people who have poor credit scores. Bad credit can come from a variety of sources, including debt collections or late payments. While it's challenging to get a lender to provide an auto loan to a person with a low credit score, it's not impossible. You can curve costly interest by paying on the principal balance each month. That way, you'll be able to cover the interest charges and get your title much earlier. Sometimes, the lender you have carries high-interest rates in general. Therefore, shop around for the lowest rate. 

How Can We Help?

Our Finance Department wants your business, so we’ll do everything we can to connect to a lender that provides a fair interest rate. If you prefer a company, connect us with one of your trusted finance companies, and we’ll work something out. And it’s okay if you can’t make a decision right away. Use the Payment Calculator tool to lay out a plan. Enter a dollar amount, interest rate, and the number of months to see the estimated premiums every thirty days. You’ll even have an opportunity to fill out a Finance Application on our website. There’s even a 30-Second Pre-Approval link to get you started before you reach our dealership.

How Can Paying My Car Loan Help My Credit?

Making timely payments on your auto loan builds credit. The longer you maintain the process of paying on time, the higher your credit score will climb. Once the balance is paid in full, it’ll look good on the credit report. If you want to speed up this method, consider making a higher deposit before getting the ride. Supplement your down payment with a trade-in car, minivan, SUV, or pickup truck. A smaller loan means fewer months and cheaper installments each month. That way, you’ll be able to build your credit score at a much more affordable rate. Additionally, your finances will open to cover other expenses, such as auto insurance or trips to restaurants near Duke Street. 

Now that you know more about bad credit auto loans in Alexandria, VA, visit Pohanka Lexus and get pre-approved in minutes. Or you can use our Finance Application online to start from home.