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Hoping to get a car financed in Alabama? Unfortunately, securing financing can be a serious aggravation, particularly if you’ve got unfavorable credit ratings. Normally, it’s better to secure your loan ahead of time. Enjoy the convenience of having a local Alabama lending professional lead you through the purchasing process. Even better, it takes just two minutes to apply.

Auto Finance Rates in Alabama

Here we have rates of interest you can expect at different credit scores. These are not to be considered advertisements. Your exact rate will depend on several factors, including loan provider, down payment, debt-to-income ratio, loan-to-value ratio, and much more.

FICO Score New Car Pre-owned Car
Excellent 3.0% 3.4%
Good 4.3% 4.9%
Average 6.0% 7.3%
Subprime 8.7% 9.8%
Bad 13.5% 14.3%
Very Bad 14.0% 16.0%

Used Car Auto Loans in Alabama

You’ll find that it is a bit more expensive to finance a used car or truck, at least when it comes to interest. Savvy buyers, however, usually go for used cars. Here, we look at the cost of a loan for a car that’s new versus a few years old.

Years Old Price APR Months Payment Interest Total Cost
New $19,000 6.00% 60 $367.32 $3,039 $22,039
1 Year $15,200 7.50% 60 $304.58 $3,075 $18,275
2 Years $12,920 7.50% 60 $258.89 $2,613 $15,533
3 Years $10,982 7.50% 60 $220.06 $2,221 $13,203

As soon as it leaves the dealership, a new car or truck loses as much as 25% of its value, and it continues losing a significant percentage of its value every year. A car that cost $19,000 when new won’t be worth but $10,982 three years later. Most companies will permit you to finance a used car up to eight years old, and some have a mileage cap of 100K miles.

Poor Credit Auto Loans in Alabama

Most lenders favor consumers with solid credit, as car loans involve a lot of money. Many of us never check our FICO scores, as we’re afraid of how low they may be. However, you really should keep an eye on your score. Before the web, you had to accept whatever APR rate and provisions they presented you. Today, there are better ways to get approved. It might seem that a buy here pay here dealer is the most convenient alternative. Such dealerships don’t look at your credit, and they offer low-cost higher-mileage cars and trucks. The negatives are noteworthy: extravagant rates of interest and inflexible terms. Instead, our recommendation is that you look for the loan you need on the web. The down payments are lower, as well as the annual percentage rates, and the service is commonly a good bit superior.

Go here to apply online.

Alabama Resources