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The majority of us buy our vehicles with the help of a lender, as it makes for affrodable monthly payments. How nice it would be if this was a simple process, but it’s really not. Banks ask quite a few questions before deciding to finance your auto loan. A lot of finance professionals recommend arranging your auto loan ahead of time, which provides quiet a few benefits:

  • Fewer hours wasted at the dealer lot.
  • Lower interest rates.
  • Greater bargaining power.

You will find professionals standing by, happy to help you finance the car you need at an economical rate of interest.

Auto Loan Rates in Alaska

The majority of banks only advertise the lowest rate available, only available to consumers with superior credit scores. Truth be told, your annual percentage rate varies widely based on your FICO score, as well as other factors. The rates displayed below are only for informational purposes. They’re not advertisements, and your exact rate will vary.

Credit Score New Car Used Car
Excellent 3.2% 2.9%
Good 4.6% 4.2%
Average 6.4% 6.1%
Subprime 9.3% 8.2%
Bad 12.9% NA
Very Bad 14.7% NA

Used Car Loans in Alaska

Car manufacturers are only really interested in selling brand new cars. Higher rates for pre-owned vehicles, however, are counterbalanced by cheaper down payments, monthly payments, and insurance costs. Below, we review the costs of financing a car or truck that is new versus 1-3 old.

Years Old Price Rate Months Payment Interest Total
New $16,250 6.00% 60 $314.16 $2,599 $18,849
1 Year $13,000 7.50% 60 $260.49 $2,630 $15,630
2 Years $11,050 7.50% 60 $221.42 $2,235 $13,285
3 Years $9,393 7.50% 60 $188.21 $1,900 $11,292

For many of us, a used car is the way to go. Used car loans have slightly higher interest rates, but in many cases, you only need 10% down, and the insurance premiums are less costly.

Poor Credit Car Loans in Alaska

Below-average credit will make it challenging to finance a car, but it isn’t out of the question. Generally, banks and lenders assess your credit score in order to determine whether you’re likely to make your payments on a regular basis. Before the web, you didn’t have much option but to accept whatever APR rate and conditions you were presented. Today, there are better strategies to get approved.

If your credit is really poor, you may think to stop by a car dealership that advertises buy here pay here financing. The interest rates are borderline criminal, and the vehicles are always used. Almost always, it’s best to deal with a local bank or loan company. There are a number of benefits: cheaper interest rates, improved service. Also, if you make your payments in a timely manner, an increase to your credit score.

Go here to apply online.

Alaska Resources