Bad Credit Auto Loans in New Orleans (LA)

NOLA resident? Need to get approved for financing? You couldn’t have found a better place. Louisiana Auto Finance is quickly becoming one of the most trusted names in auto finance for New Orleans residents. We can help you put together your financing right from your computer. Once you submit the easy 3-minute application, and we’ll start working to get you approved by a lender or dealer who suits your needs. Most of our clients receive a response within minutes, and we have a 90% success rate among qualified applicants.

New-OrleansIn New Orleans, bad credit car loans are a large part of what we do. A lot of major dealerships now have departments dedicated to what they call “special finance” – the part of the market dedicated to borrowers with high-risk credit. Many of these dealerships refer to themselves as “bad credit car dealerships,” and we have a wide array of them in our network.

The process is not very different from traditional financing, except that they will work with credit scores ranging from 650 all the way down to the 500’s and lower. Typically, these dealers place more emphasis on how much money you presently make, versus how quickly you paid your bills in the past. Most prefer that you earn at least $375 per week before taxes and insurance, and that you can verify this income through pay stubs. If you meet these income requirements, we can typically get you matched with a finance specialist instantly. Go here to apply online.

New Orleans Auto Loan Rates

The Big Easy has relatively high auto finance rates compared to many major cities. Of course, your actual APR rate will be largely determined by your credit score. Consumers with scores of 620 to 660 can expect rates in the neighborhood of 11-16% APR. Those with scores of 590 can expect rates of 19-21%, while those with scores of 500-590 can expect 20-22% APR.

If your score is 660 or lower, you really need to avoid anything flashy or expensive when it comes to the vehicle you choose.  It’s smarter to purchase a budget-friendly vehicle with low payments. This will keep your debt-to-income ratio lower, while saving you the stress of an overtaxed monthly budget. Plus, making regular payments on an installment loan is a good way to improve your credit rating, so it pays to keep your payments low. Ready to get started? Let us find you a lender or dealer that finances bad credit – apply today!

How Much Car Can I Afford?

Estimating how much you can borrow is pretty easy. Just multiply your monthly income by the income factor associated with the state of your credit. We’ve included one such example, based on the average income of New Orleans residents: $725.

Credit Income Factor Sum
Good Credit 10 $7,250
Average Credit 9 $6,525
Subprime Credit 8 $5,800
Poor Credit 7 $5,075
Really Bad Credit 6 $5,075

Just because you’re able to borrow this amount, doesn’t mean you should. A smaller loan is a good idea, because it will lower the risk of being delinquent with payments.

How Much Will I Owe at Signing?

We have many lenders in our network who don’t require borrowers to supply a down payment. However, a down payment gives you substantial benefits:

  • Reduces the length of the loan, meaning less paid in interest.
  • Lowers payment per month.
  • Reduces the risks of an underwater loan.

That said, we understand that down payments are especially challenging these days. We help people get financed each and every day, even with no money down.

New Orleans Buy Here Pay Here Financing

This sort of financing is often referred to as tote the note, your job is your credit, in house or no credit check financing. Shoppers who have been unable to secure financing because of major credit problems like bankruptcy often find themselves at these types of dealerships. There are fewer roadblocks to credit acceptance, but the rates are high, the prices often unfair, and repossession rates are high because of the strict repayment terms. In many cases, your vehicle could be repossessed if your payment is even a day late. The thing is, people with bad credit think that buy here pay here is their only option, and it isn’t. We can help you avoid getting ripped off by a BHPH dealer. Opt instead for a bad credit car loan arranged through us. Apply online – it takes less than 3 minutes.

New Orleans-Specific Credit, Income Numbers

Here are some average stats for New Orleans residents.

  • Average Income: $725 Per Month
  • Average Car Payment: $80 (11% of Income)
  • Recommended Monthly Payment: $58 to $73 (8%-10% of Income)

New Orleans Consumers by Credit Tier

NOLA enjoys one of the busiest maritime ports in the world, as well as a year-round influx of tourists. Both of these economic engines help to keep the city afloat, but it still suffers from high rates of poverty and crime. These factors often correspond to credit problems among residents, and New Orleans is no exception. Below we have estimates of just how many NOLA residents fall into each credit tier.

FICO Score % of Population Residents
300-499 2% 10,508
500-549 5% 26,270
550-599 8% 42,031
600-649 12% 63,047
650-699 15% 78,809
700-749 18% 94,571
750-799 27% 141,856
800-850 13% 68,301

No matter what your credit score is, we can help. We work with consumers of all credit scores and income levels. That’s our primary goal. Are you ready to get approved for a car loan in New Orleans? Click here to apply online.