Financing for All Credit Types

How to Obtain an Auto Loan

At Volkswagen Lee’s Summit, we strive to make the process of getting approved for an auto loan as simple as possible, even for guests who have bad or no credit. With over 10 years of experience, Volkswagen Lee’s Summit has the tools and resources to help provide auto loans to customers in nearly any situation. While many dealerships and banks might turn away credit-challenged customers, Volkswagen Lee’s Summit looks at a variety of factors beyond your credit score to find a loan solution that fits your budget. We believe that past financial issues shouldn't keep you from driving the car you want. Our professional finance team is dedicated to providing clear information and supporting you throughout the entire process, so you can drive away with confidence, no matter your credit history. 

Interest Rates and Duration Several factors influence the terms and interest rate of your auto loan:

• Credit Score: Your credit score is one of the most critical factors. Higher credit scores generally qualify for lower interest rates and more favorable loan terms, while lower scores may result in higher rates and less favorable terms.
• Loan Term: The length of the loan impacts your interest rate. Shorter loan terms (e.g., 24 to 36 months) often have lower interest rates but higher monthly payments. Longer terms (e.g., 48 to 84 months) may offer lower monthly payments but usually come with higher interest rates and more total interest paid over the life of the loan.
• Down Payment: A larger down payment reduces the amount you need to borrow, which can lead to better loan terms and lower interest rates. It also demonstrates to lenders that you are financially responsible, which can positively influence your rate.
• Loan Amount: The size of the loan can affect your interest rate. Larger loans might come with higher rates due to the increased risk for lenders.
• Vehicle Type and Age: New cars often have lower interest rates compared to used cars. Additionally, the make and model of the vehicle can impact the rate, with some vehicles qualifying for special financing offers.
• Income and Employment Status: Lenders evaluate your income and employment stability to determine your ability to repay the loan. Higher and more stable income can lead to better loan terms.
• Debt-to-Income Ratio: This ratio measures your monthly debt payments compared to your monthly income. A lower debt-to-income ratio suggests better financial health and can help secure more favorable loan terms.
• Economic Conditions: Broader economic factors, such as prevailing interest rates set by central banks and overall market conditions, can influence the interest rates offered by lenders.

At Volkswagen Lee’s Summit, we recognize that not everyone has perfect credit. Our experienced finance team is dedicated to helping you find financing solutions tailored to your specific needs. We offer a variety of loan options and flexible terms to accommodate different credit profiles, and we provide comprehensive support throughout the process. Even with less-than-ideal credit, we are committed to helping you secure an auto loan that fits your budget and supports your credit improvement journey.

How to Improve Your Credit Score

By taking out a car loan and making regular, on-time payments, you can boost your credit score over time. Each timely payment is reported to credit bureaus, positively impacting your payment history—a key component of your credit score.

An auto loan can also diversify your credit mix, showing lenders that you can responsibly manage various types of credit. Over time, these positive credit behaviors can lead to a higher credit score, making it easier to qualify for future loans with better terms. Volkswagen Lee’s Summit is here to guide you through the financing process and support you in building a stronger credit future.