Anchorage (AK) Auto Loans

For lots of car-buyers, getting financed is the main impediment to obtaining the car or truck they really want. Often, car loans are arranged on the day of purchase, but this can be a very frustrating process. Most financial professionals advocate obtaining your auto loan in advance, which provides the following advantages:

• Less time wasted at the car lot.
• Reduced interest rates.
• Greater negotiating power.

An auto loan expert can direct you step by step through the process, ensuring you obtain the financing you need from a finance company you can trust.

Car Loan Rates in Anchorage

Please keep in mind that the rates below are not advertisements, but instead estimates at the time of publication. Exact rates differ.

FICO Rating	New Car	Pre-owned 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

You ought to know what your FICO score is. You can check your score here.

Used Auto Loans in Anchorage

New vehicles have the most competitive rates. However, used cars and trucks are less expensive in the end, and they don’t depreciate as fast. The numbers speak on their own.

Age	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

As you have seen, the car bought new for $16,250 will only be worth $9,393 after 36 months. Most companies will allow you to finance a used car up to eight years old, and some cap the mileage at 100K miles.

Poor Credit Auto Loans in Anchorage

Bad credit has become a serious difficulty for consumers in Anchorage, and all through Alaska. More often than not, the better your credit, the lower your annual percentage rate. In decades past, there were few finance companies who would approve car loans for people with bad credit. Now many finance companies, not to mention some banks, have special finance units.

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Of course, you’ll need to be wary of unethical finance companies. This is especially the truth if you end up with a buy here pay here car dealership. Clearly, your credit will not be an issue, but you will wind up forking over a boatload in interest for a high mileage vehicle.

Instead, we recommend that you look for the loan you need on the web. The down payments are lower, as are the interest rates, and the service is commonly a good bit better.

Go here to apply online.

Decreasing Your Annual Percentage Rate

Although your interest will be based on your credit scores, there are things that can be done to make your auto loan more affordable. Resolving any credit report mistakes can improve your credit score significantly. Fortunately, you can check your credit once a year, cost free, at annualcreditreport.com.

Disputing inaccuracies is relatively easy. You can do it yourself, or enlist one of the credit restoration companies that serves Anchorage. In some cases, including a cosigner with your loan package could also lower your annual percentage rate.

Zero Down Financing in Anchorage

The money needed to finance a new vehicle can be as much or even more than the price of a pre-owned vehicle. When you’ve got first-class credit, the majority of loan creditors will not demand a down payment. If your credit is just fair, however, a down payment of 10-20% is typically needed. The lack of a down payment raises your rate of interest. For people with exceptional credit, this isn’t so much a concern, as your rate is affordable already. If you have bad credit, on the other hand, your rate could increase a whole lot. It’s smarter to save for a down payment or exchange your old vehicle for equity.

Anchorage Resources

• Alaska DMV: http://doa.alaska.gov/dmv/
• Division of Banking and Securities: https://www.commerce.alaska.gov/web/dbs/

Credit Unions