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What Is A Subprime Auto Loan?

Get a loan for a used car at Elkhart, IN.


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What Is A Subprime Auto Loan?

Suppose you are in search of a used car for sale with low credit. In this case, you might find yourself getting turned away at dealerships. Getting turned away can feel frustrating at times, and it adds to the stress that comes with trying to find a car.

Fortunately, dealerships like USA-1’s buy here pay here car lot near Fort Wayne provide a solution for car buyers with low credit. This solution is accomplished using subprime auto loans, which are loans specifically for buyers with low credit. Before you take advantage of these loans, there are a few things you should first understand to use these loans effectively. Therefore, we at USA-1 have compiled a list below that gives five pieces of information about subprime auto loans and how they work.

1. Caters To Low-Credit BuyersThe first thing to understand is that dealerships like our buy here pay here car lot near Fort Wayne use subprime loans to cater to low-credit buyers. The term “subprime” also indicates a specific credit bracket, which is anyone with a credit score between 501-600. Therefore, anyone within this credit bracket that is searching for a used car for sale will utilize a subprime loan.

2. Determining EligibilityIf you visit USA-1’s buy here pay here car lot near Fort Wayne, or any other buy here pay here car lot, it is essential to know how they determine loan eligibility. Because they cater to low-credit buyers, buy here pay here dealers do not use credit to determine loan eligibility. Instead, they use other factors to decide how much you qualify for on a loan. These factors can be seen listed below:

  • Debt-to-income Ratio
  • Payment-to-income Ratio
  • Living Situation

3. Impact On Your CreditAfter you understand how eligibility is determined, the next thing you should note is the impact a loan will have on your credit. Even though credit is not used to decide eligibility on used cars for sale with subprime loans, a subprime loan, along with any loan, will have an impact on your credit score. If you make payments on time, it will positively affect your credit. However, if you miss payments, it will negatively affect your credit score. Therefore, you should make payments on time to get out of a low credit situation.

4. Higher Interest RatesThe next to note about subprime auto loans is that the loan interest rates on used cars for sale near you will typically be higher than loans for higher credit scores. This is because low-credit dealers are taking a risk by lending to buyers with low-credit; therefore, they compensate for this risk by raising interest rates. Luckily, there are some things you could do to counter these interest rates, such as making a down payment, trading in an old car, or considering a co-signer.

5. Limited Selection Of Vehicles Based On EligibilityThe final thing you will usually see when visiting dealerships offering subprime loans is a limited selection of vehicles. This is because your eligibility determines which cars are available for you to buy. Despite this, you should still aim to find a dealership that sells the vehicles you want. For example, if you need to tow something, you should find buy here pay here dealerships specializing in used trucks for sale near you. On the other hand, if you need to transport your family, you should search for dealerships that have a lot of used SUVs for sale.

If you visit USA-1’s dealership to buy here pay here near Indiana, you will notice that we set ourselves apart from typical buy here pay here dealers with our expansive selection of used cars.

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Exterior: 
Black
Interior: 
Diesel Gray/Black 
Mileage:
26,689
Engine:
8cyl, 5.7 L, 395 HP
Model #: 
DT6H41
VIN:
1C6SRFBT7LN222798
Stock #:
222798
Internet Price:  
$34,900
This used 2020 RAM 1500 Big Horn Quad Cab 4x4 6'4" Box is for sale today at our dealership in Elkhart, IN.This 4x4 2020 RAM 1500 Big Horn Quad Cab 4x4 6'4" Box features a Diamond Black Crystal Pearlcoat Exterior with a Fabric Interior and has only 26,689 miles.TECHNOLOGY FEATURES: This RAM 1500...   Read More
Exterior: 
Silver
Interior: 
Jet Black 
Mileage:
88,644
Engine:
8cyl, 5.3 L, 355 HP
Model #: 
CK15753
VIN:
1GCVKREC4HZ194661
Stock #:
194661
Internet Price:  
$19,900
This used 2017 Chevrolet Silverado 1500 1LT is for sale today at our dealership in Elkhart, IN.This 4x4 2017 Chevrolet Silverado 1500 1LT features a Silver Ice Metallic Exterior with a Fabric Interior and has only 88,644 miles.TECHNOLOGY FEATURES: This Chevrolet Silverado 1500 Includes: WiFi...   Read More
Exterior: 
Black
Interior: 
Black 
Mileage:
25,898
Engine:
4cyl, 2.4 L, 173 HP
Model #: 
JCDH49
VIN:
3C4PDCABXLT254066
Stock #:
254066
Internet Price:  
$15,900
This used 2020 Dodge Journey SE Value is for sale today at our dealership in Elkhart, IN.This fwd 2020 Dodge Journey SE Value features a Pitch Black Clearcoat Exterior with a Fabric Interior and has only 25,898 miles.TECHNOLOGY FEATURES: This Dodge Journey Includes: Keyless Start, Primary display...   Read More
Exterior: 
White
Interior: 
Beige 
Mileage:
79,411
Engine:
6cyl, 3.6 L, 323 HP
Model #: 
1EH37
VIN:
2G1FC1E35E9136558
Stock #:
136558
Internet Price:  
$10,900
This used 2014 Chevrolet Camaro 2LT is for sale today at our dealership in Elkhart, IN.This rwd 2014 Chevrolet Camaro 2LT features a Summit White Exterior with a Fabric Interior and has only 79,411 miles.TECHNOLOGY FEATURES: This Chevrolet Camaro Includes: WiFi Mobile Hotspot, Heads Up Display,...   Read More
Exterior: 
Black
Interior: 
Jet Black 
Mileage:
57,605
Engine:
6cyl, 3.6 L, 308 HP
Model #: 
12N53
VIN:
1GCHTCEN8H1329745
Stock #:
329745
Internet Price:  
$17,900
This used 2017 CHEVROLET COLORADO LT is for sale today at our dealership in Elkhart, IN.This 4x4 2017 CHEVROLET COLORADO LT features a Black Exterior with a Fabric Interior and has only 57,605 miles.TECHNOLOGY FEATURES: This CHEVROLET COLORADO Includes: Remote Engine Start, WiFi Mobile Hotspot,...   Read More
Exterior: 
Black
Interior: 
Dark Ash/Jet Black 
Mileage:
69,649
Engine:
8cyl, 5.3 L, 355 HP
Model #: 
CK15753
VIN:
1GCVKPEC9FZ288746
Stock #:
288746
Internet Price:  
$19,900
This used 2015 Chevrolet Silverado 1500 LS is for sale today at our dealership in Elkhart, IN.This 4x4 2015 Chevrolet Silverado 1500 LS features a Black Exterior with a Fabric Interior and has only 69,649 miles.TECHNOLOGY FEATURES: This Chevrolet Silverado 1500 Includes: WiFi Mobile Hotspot,...   Read More
Exterior: 
Black
Interior: 
Black 
Mileage:
96,372
Engine:
4cyl, 2.4 L, 184 HP
Model #: 
KLJL74
VIN:
1C4PJMAB2HW611630
Stock #:
611630
Internet Price:  
$12,900
This used 2017 Jeep Cherokee Sport 4x4 is for sale today at our dealership in Elkhart, IN.This 4x4 2017 Jeep Cherokee Sport 4x4 features a Diamond Black Crystal Pearlcoat Exterior with a Fabric Interior and has only 96,372 miles.TECHNOLOGY FEATURES: This Jeep Cherokee Includes: Wireless streaming,...   Read More
Exterior: 
Black
Interior: 
Jet Black 
Mileage:
30,164
Engine:
6cyl, 3.6 L, 310 HP
Model #: 
6NH26
VIN:
1GYKNDRS1KZ260258
Stock #:
260258
Internet Price:  
$24,900
This used 2019 Cadillac XT5 Luxury is for sale today at our dealership in Elkhart, IN.This awd 2019 Cadillac XT5 Luxury features a Stellar Black Metallic Exterior with a Fabric Interior and has only 30,164 miles.TECHNOLOGY FEATURES: This Cadillac XT5 Includes: WiFi Mobile Hotspot, Remote Engine...   Read More
Exterior: 
Other
Mileage:
47,332
Engine:
4cyl, 2 L, 268 HP
Model #: 
81210
VIN:
3PCAJ5M30LF102178
Stock #:
102178
Internet Price:  
$24,900
This used 2020 INFINITI QX50 LUXE AWD is for sale today at our dealership in Elkhart, IN.TECHNOLOGY FEATURES: This INFINITI QX50 Includes: Remote Engine Start, Wireless streaming, Keyless Start, Garage Door Opener, SiriusXM Satellite Radio, Primary display touchscreen, Smart Device Integration,...   Read More
Exterior: 
White
Interior: 
Charcoal Black 
Mileage:
33,462
Engine:
4cyl, 1.5 L, 179 HP
Model #: 
U9H
VIN:
1FMCU9HD1KUB41440
Stock #:
B41440
Internet Price:  
$19,900
This used 2019 Ford Escape SEL is for sale today at our dealership in Elkhart, IN.This 4x4 2019 Ford Escape SEL features a White Platinum Metallic Tri-coat Exterior with a Fabric Interior and has only 33,462 miles.TECHNOLOGY FEATURES: This Ford Escape Includes: WiFi Mobile Hotspot, Remote Engine...   Read More
Exterior: 
Silver
Interior: 
Jet Black 
Mileage:
48,648
Engine:
6cyl, 3.6 L, 310 HP
Model #: 
1NW56
VIN:
1GNEVHKW0MJ184886
Stock #:
184886
Internet Price:  
$26,900
This used 2021 Chevrolet Traverse AWD LT Leather is for sale today at our dealership in Elkhart, IN.This awd 2021 Chevrolet Traverse AWD LT Leather features a Silver Ice Metallic Exterior with a Fabric Interior and has only 48,648 miles.TECHNOLOGY FEATURES: This Chevrolet Traverse Includes: WiFi...   Read More
Exterior: 
White
Interior: 
Red 
Mileage:
48,898
Engine:
6cyl, 3.6 L, 285 HP
Model #: 
JKJS74
VIN:
1C4BJWFG8FL691105
Stock #:
691105
Internet Price:  
$24,900
This used 2015 Jeep Wrangler Unlimited Rubicon is for sale today at our dealership in Elkhart, IN.This 4x4 2015 Jeep Wrangler Unlimited Rubicon features a Bright White Clearcoat Exterior with a Fabric Interior and has only 48,898 miles.TECHNOLOGY FEATURES: This Jeep Wrangler Unlimited Includes:...   Read More
Exterior: 
Black
Interior: 
Black 
Mileage:
46,259
Engine:
6cyl, 3.2 L, 271 HP
Model #: 
KLJE74
VIN:
1C4PJMLX6JD562734
Stock #:
562734
Internet Price:  
$17,900
This used 2018 Jeep Cherokee Latitude Plus 4x4 is for sale today at our dealership in Elkhart, IN.This 4x4 2018 Jeep Cherokee Latitude Plus 4x4 features a Diamond Black Crystal Pearlcoat Exterior with a Fabric Interior and has only 46,259 miles.TECHNOLOGY FEATURES: This Jeep Cherokee Includes:...   Read More
Exterior: 
Black
Interior: 
Jet Black 
Mileage:
38,322
Engine:
4cyl, 1.5 L, 160 HP
Model #: 
1ZS69
VIN:
1G1ZG5ST1MF016694
Stock #:
016694
Internet Price:  
$19,900
This used 2021 Chevrolet Malibu FWD RS is for sale today at our dealership in Elkhart, IN.This fwd 2021 Chevrolet Malibu FWD RS features a Mosaic Black Metallic Exterior with a Fabric Interior and has only 38,322 miles.TECHNOLOGY FEATURES: This Chevrolet Malibu Includes: WiFi Mobile Hotspot,...   Read More
Exterior: 
Black
Interior: 
Black/Light Graystone 
Mileage:
43,973
Engine:
6cyl, 3.6 L, 283 HP
Model #: 
RTKH53
VIN:
2C4RDGBG5KR781153
Stock #:
781153
Internet Price:  
$18,900
This used 2019 Dodge Grand Caravan SE is for sale today at our dealership in Elkhart, IN.This fwd 2019 Dodge Grand Caravan SE features a Black Onyx Crystal Pearlcoat Exterior with a Fabric Interior and has only 43,973 miles.TECHNOLOGY FEATURES: This Dodge Grand Caravan Includes: Digital Media...   Read More
Exterior: 
White
Interior: 
Saddle Brown 
Mileage:
45,400
Engine:
6cyl, 3 L, 300 HP
Model #: 
90611
VIN:
JN1EV7CR3MM754988
Stock #:
754988
Internet Price:  
$24,900
This used 2021 INFINITI Q50 SIGNATURE EDITION AWD is for sale today at our dealership in Elkhart, IN.This awd 2021 INFINITI Q50 SIGNATURE EDITION AWD features a Majestic White Exterior with a Fabric Interior and has only 45,400 miles.TECHNOLOGY FEATURES: This INFINITI Q50 Includes: WiFi Mobile...   Read More
Exterior: 
Red
Interior: 
Black 
Mileage:
47,294
Engine:
4cyl, 2.4 L, 180 HP
Model #: 
KLJE74
VIN:
1C4PJMLB7LD617330
Stock #:
617330
Internet Price:  
$19,900
This used 2020 Jeep Cherokee Latitude Plus 4X4 is for sale today at our dealership in Elkhart, IN.This 4x4 2020 Jeep Cherokee Latitude Plus 4X4 features a Velvet Red Pearlcoat Exterior with a Fabric Interior and has only 47,294 miles.TECHNOLOGY FEATURES: This Jeep Cherokee Includes: Remote Engine...   Read More
Exterior: 
Silver
Interior: 
Black 
Mileage:
49,573
Engine:
4cyl, 2 L, 152 HP
Model #: 
JRA
VIN:
JF2GTAAC0JG262065
Stock #:
262065
Internet Price:  
$19,900
This used 2018 Subaru Crosstrek 2.0i is for sale today at our dealership in Elkhart, IN.This awd 2018 Subaru Crosstrek 2.0i features a Ice Silver Metallic Exterior with a Fabric Interior and has only 49,573 miles.TECHNOLOGY FEATURES: This Subaru Crosstrek Includes: Wireless streaming, All-in-one...   Read More
Exterior: 
Black
Interior: 
Light Putty 
Mileage:
51,617
Engine:
4cyl, 1.5 L, 181 HP
Model #: 
P0H
VIN:
3FA6P0HD1KR179347
Stock #:
179347
Internet Price:  
$15,900
This used 2019 Ford Fusion SE is for sale today at our dealership in Elkhart, IN.This fwd 2019 Ford Fusion SE features a Agate Black Exterior with a Fabric Interior and has only 51,617 miles.TECHNOLOGY FEATURES: This Ford Fusion Includes: WiFi Mobile Hotspot, Remote Engine Start, Keyless Start,...   Read More
Exterior: 
White
Interior: 
Black w/Orange Stitching 
Mileage:
29,089
Engine:
4cyl, 2 L, 152 HP
Model #: 
MRD
VIN:
JF2GTAEC8M8397058
Stock #:
397058
Internet Price:  
$22,900
This used 2021 Subaru Crosstrek Premium is for sale today at our dealership in Elkhart, IN.This awd 2021 Subaru Crosstrek Premium features a Crystal White Pearl Exterior with a Fabric Interior and has only 29,089 miles.TECHNOLOGY FEATURES: This Subaru Crosstrek Includes: Remote Engine Start, WiFi...   Read More
Exterior: 
Purple
Interior: 
Jet Black 
Mileage:
16,652
Engine:
4cyl, 1.5 L, 160 HP
Model #: 
1ZS69
VIN:
1G1ZG5ST6LF068174
Stock #:
068174
Internet Price:  
$19,900
This used 2020 Chevrolet Malibu FWD RS is for sale today at our dealership in Elkhart, IN.This fwd 2020 Chevrolet Malibu FWD RS features a Black Cherry Metallic Exterior with a Fabric Interior and has only 16,652 miles.TECHNOLOGY FEATURES: This Chevrolet Malibu Includes: Remote Engine Start, WiFi...   Read More
Exterior: 
Blue
Interior: 
Black 
Mileage:
32,387
Engine:
4cyl, 2 L, 255 HP
Model #: 
C300W4
VIN:
55SWF8EB8KU308831
Stock #:
308831
Internet Price:  
$29,900
This used 2019 Mercedes-Benz C 300 4MATIC is for sale today at our dealership in Elkhart, IN.This awd 2019 Mercedes-Benz C 300 4MATIC features a Lunar Blue Metallic Exterior with a Fabric Interior and has only 32,387 miles.TECHNOLOGY FEATURES: This Mercedes-Benz C 300 Includes: WiFi Mobile...   Read More
Exterior: 
Blue
Interior: 
Camel 
Mileage:
60,345
Engine:
8cyl, 5.4 L, 310 HP
Model #: 
U1J
VIN:
1FMJU1J58BEF26953
Stock #:
F26953
Internet Price:  
$12,900
This used 2011 Ford Expedition XLT is for sale today at our dealership in Elkhart, IN.This 4x4 2011 Ford Expedition XLT features a Dark Blue Pearl Metallic Exterior with a Fabric Interior and has only 60,345 miles.TECHNOLOGY FEATURES: This Ford Expedition Includes: WiFi Mobile Hotspot, Wireless...   Read More
Exterior: 
White
Interior: 
Jet Black 
Mileage:
37,562
Engine:
4cyl, 1.5 L, 160 HP
Model #: 
1ZD69
VIN:
1G1ZD5ST8JF106932
Stock #:
106932
Internet Price:  
$14,900
This used 2018 Chevrolet Malibu LT is for sale today at our dealership in Elkhart, IN.This fwd 2018 Chevrolet Malibu LT features a Summit White Exterior with a Fabric Interior and has only 37,562 miles.TECHNOLOGY FEATURES: This Chevrolet Malibu Includes: WiFi Mobile Hotspot, Keyless Start,...   Read More
Exterior: 
Blue
Interior: 
Black 
Mileage:
36,079
Engine:
6cyl, 3.6 L, 285 HP
Model #: 
JLJL74
VIN:
1C4HJXDG1JW318112
Stock #:
318112
Internet Price:  
$29,900
This used 2018 Jeep Wrangler Unlimited Sport S 4x4 is for sale today at our dealership in Elkhart, IN.This 4x4 2018 Jeep Wrangler Unlimited Sport S 4x4 features a Ocean Blue Metallic Clearcoat Exterior with a Fabric Interior and has only 36,079 miles.TECHNOLOGY FEATURES: This Jeep Wrangler Unlimited...   Read More
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