Buy Here Pay Here Milwaukee, WI

Guaranteed auto financing is a popular option for people with really bad credit. When your credit is good, lenders approve new & used car financing based on your history of paying your bills on time, so occasionally the lender will lend people with fair to good credit more money than the vehicle is worth; a good example of this is negative equity car loans. When your credit is really bad the lender approves the loan based on the collateral value of the vehicle, so there is not a set amount that you are approved for. Most guaranteed auto financing lenders will let you borrow between 80% and 90% of the wholesale value of the new or used car. Most car dealers, however, sell cars for retail, which is on average 10% above the wholesale value. The following table demonstrates how guaranteed auto financing would work based on a 90% collateral value loan amount.

Wholsale Value	Retail Value	License & Tax Fees	Total Price	Guaranteed Loan Amount	Money Down
$2,700.00	$3,000.00	$195.00	$3,195.00	$2,430.00	$765.00
3,600.00	4,000.00	260.00	4,260.00	3,240.00	1,020.00
4,500.00	5,000.00	325.00	5,325.00	4,050.00	1,275.00
5,400.00	6,000.00	390.00	6,390.00	4,860.00	1,530.00
6,300.00	7,000.00	455.00	7,455.00	5,670.00	1,785.00
7,200.00	8,000.00	520.00	8,520.00	6,480.00	2,040.00
8,100.00	9,000.00	585.00	9,585.00	7,290.00	2,295.00
9,000.00	10,000.00	650.00	10,650.00	8,100.00	2,550.00
9,000.00	10,000.00	650.00	10,650.00	8,100.00	2,550.00
9,900.00	11,000.00	715.00	11,715.00	8,910.00	2,805.00
10,800.00	12,000.00	780.00	12,780.00	9,720.00	3,060.00
11,700.00	13,000.00	845.00	13,845.00	10,530.00	3,315.00
12,600.00	14,000.00	910.00	14,910.00	11,340.00	3,570.00
13,500.00	15,000.00	975.00	15,975.00	12,150.00	3,825.00
14,400.00	16,000.00	1,040.00	17,040.00	12,960.00	4,080.00
15,300.00	17,000.00	1,105.00	18,105.00	13,770.00	4,335.00
16,200.00	18,000.00	1,170.00	19,170.00	14,580.00	4,590.00
17,100.00	19,000.00	1,235.00	20,235.00	15,390.00	4,845.00
18,000.00	20,000.00	1,300.00	21,300.00	16,200.00	5,100.00

As you can see, a 90% collateral loan translates into roughly 75% of the entire cost of buying a used car at a retail price. So it's easy to see that the most important part of guaranteed auto financing is having a cash down payment.