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The vast majority of individuals purchase their cars and trucks using a loan, as it’s rare to have the capital in the bank for an outright purchase. Whether you get approved for a car loan, and what interest rate you are charged, depends primarily on your credit rating. Other factors:

  • Place of residence
  • Monthly income
  • Down payment
  • Employment record

To help speed up the process, you can apply on the web for a car loan. There are professionals in your area, who can help you get a loan with an economical rate of interest.

Auto Finance Rates in Montgomery

Many loan companies only advertise the best rate available, which is only available to people with ideal credit. In reality, your interest rate varies greatly based on your FICO score, among a range of other things. The rates shown below are only for informational purposes. They are not advertisements, and your actual rate could be very different.

Credit Rating New Car Used 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 Auto Loans in Montgomery

As you may have already seen, loan providers charge slightly more expensive interest rates for used cars and trucks. That said, new vehicles depreciate so quickly, used vehicles are generally the better investment. Have a look at the chart below.

Age Price Rate Months Payment Interest Total Cost
New $26,000 6.00% 60 $502.65 $4,159 $30,159
1 Year $20,800 7.50% 60 $416.79 $4,207 $25,007
2 Years $17,680 7.50% 60 $354.27 $3,576 $21,256
3 Years $15,028 7.50% 60 $301.13 $3,040 $18,068

The instant it leaves the dealership, a new car loses nearly 25% of its value, and it keeps depreciating year after year. A car that cost $26,000 new will be worth approximately $15,028 after 36 months of ownership. Ordinarily, you can finance a car that is up to ten years old. Mileage restrictions often apply.

Bad Credit Auto Loans in Montgomery

Credit scores of 680 or less are usually classified as subprime, and those less than 620 are simply bad. Few things are more embarrassing than being declined at the car dealership. Fortunately, the internet makes it less of a challenge for the non-prime buyer.

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It might seem that a buy here pay here dealer is the quickest option. A lot of these dealers don’t even pull your credit, and they offer affordable, second hand vehicles. Having no credit check comes at a price: exorbitant rates, rigid conditions, and overpriced vehicles. Instead, our recommendation is that you secure a loan online. There are lots of benefits: better rates of interest, improved service. Plus, if you make your payments as agreed, an improved credit score.

Contact an auto finance professional in your area today.

Montgomery Credit Restoration

Although your rate of interest will be determined by your credit ratings, there are things you can do to make your car loan more economical. Is your credit report marred by any inaccuracies? These can damage your credit score in a big way. Fortunately, it’s free to check your credit report each year at www.annualcreditreport.com. Addressing any inaccuracies–a straight-forward process–could really boost your credit score. Supplying a bigger down payment or the addition of a cosigner with a good credit score could also decrease your annual percentage rate.

No Down Payment Auto Loans in Montgomery

Saving enough cash you need to obtain a car is never easy, even if you’re only making a down payment. For those who have really good credit, a down payment isn’t usually a requirement. Assuming you have below-average credit, there’s only one main solution: get a hold of a car dealership that accepts trades, and see if they will take your old car instead of a down payment.

Montgomery Resources

Credit Unions

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[tboot_table strip=”yes” border=”yes” hover=”yes” cols=”Credit Union,Address,Zip Code,Telephone” data=”Alabama Rural Electric,PO Box 240547,36124,(334) 215-7328,Alabama Rural Electric,340 Technacenter Dr,36117,(334) 215-7328,Alabama State Employees,PO Box 231150,36123,(334) 270-9011,Alabama State Employees,800 Washington Ave,36104,(334) 270-9011,Alabama State Employees,1000 Interstate Park Dr,36109,(334) 270-9011,Alabama State Employees Credit Union,74 Dudley St,36105,(334) 285-8303,Alabama Student Loan Program Kheaa,100 N Union St,36130,(334) 265-9720,Alabama Telco,2906 Atlanta Hwy,36109,(334) 271-4526,Apco Employees,244 Dexter Ave,36104,(334) 832-3822,Credit Union Service Center,128 Coliseum Blvd,36109,(334) 271-5154,Employees Savings,p o box 11870,36111,(334) 288-2460,Employees Savings,2001 E South Blvd,36111,(334) 288-2460,Energen,2914 Chestnut St,36107,(334) 263-7077,Fedmont,330 Eastdale Cir,36117,(334) 270-5532,Guardian,P.O. Box 3199,36109,(334) 244-9999,Guardian,15 E South St,36104,(334) 262-0055,Guardian,616 Madison Ave,36104,(334) 242-5484,Guardian,1789 Cong w L Dickinson Dr,36109,(334) 244-9999,Guardian,3380 Eastdale Cir,36117,(334) 241-8774,Guardian,418 Madison Ave,36104,(334) 241-8754,Max,P.O. Box 244040,36124,(334) 260-2600,Max,5245 Vaughn Rd,36116,(334) 215-5522,Max,10 Selfridge St,36112,(334) 215-5472,Max,100 Turner Blvd,36114,(334) 215-5487,Max,3401 Malcolm Dr,36116,(334) 215-5611,Max,2785 Zelda Rd,36106,(334) 215-5552,Max,401 Monroe St,36104,(334) 215-5571,Max,400 Eastdale Cir,36117,(334) 260-2600,Max,4705 Mobile Hwy,36108,(334) 215-5496,Montgomery V A Federal Credit Union,215 Perry Hill Rd,36109,(334) 279-9632,Montgomery Va,345 Perry Hill Rd,36109,(334) 272-7790,Navy Federal Credit Union,2767 Eastern Blvd,36117,(888) 842-6328,Tri-Rivers,400 Arba St,36104,(334) 834-7483″][/tboot_table]

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