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The majority of new cars and trucks are bought with a loan, and the others are mainly leased. Whether you’re financed depends on a wide variety of factors, such as:

  • FICO History
  • Income
  • Location
  • Cash Or Trade

A lot of financial professionals recommend obtaining your financing in advance, which offers several advantages:

  • Less time wasted at the dealership.
  • Lesser rate of interest.
  • Greater bargaining power.

There are experts in your part of Arkansas, determined to help you finance the car you need at a competitive rate of interest.

Auto Loan Rates in Arkansas

These rates are not anything but estimations to give you a feeling for what interest rates you can expect given your location and your FICO score. Exact interest rates differ.

Credit Rating New Car Pre-owned Car
Excellent 3.0% 3.3%
Good 4.3% 4.7%
Average 7.4% 8.4%
Subprime 12.4% 13.5%
Bad 19.1% 19.6%
Very Bad NA NA

Don’t know your credit score? You should. We suggest going here, where you can check your score at no cost.

Used Car Financing in Arkansas

A brand new vehicle is attractive, beyond doubt. However, new vehicles lose value so quickly, used cars are generally the better value. You can finance a solid used vehicle for half what it costs to finance a brand new one.

Age Price Rate Months Payment Interest Total
New $29,000 6.00% 60 $560.65 $4,639 $33,639
1 Year $23,200 7.50% 60 $464.88 $4,693 $27,893
2 Years $19,720 7.50% 60 $395.15 $3,989 $23,709
3 Years $16,762 7.50% 60 $335.88 $3,391 $20,153

As you have seen, the car financed new for $29,000 won’t be worth but $16,762 after 36 months. Listed below are the common restrictions on auto loans for used cars:

  • Car not more than 7-10 years old.
  • Mileage no more than 100,000.
  • Purchased through dealer, not private party.

Bad Credit Auto Loans in Arkansas

Poor credit has become a major challenge for the consumers of Arkansas and beyond. There is nothing more embarrassing than being declined by the dealership. Back in the day, consumers had to go from lender to lender, in search of one prepared to approve them for financing. Fortunately, technological advances have eliminated much of this legwork.

On the spot financing is a second option, supplied by Arkansas’s buy here pay here (BHPH) car lots. While you probably won’t have problem with respect to approval, you’ll be taxed handsomely for the privilege. Whenever you can, you’ll want to get your auto loan through one of the following loan companies:

  • National or regional bank.
  • Credit union in your area.
  • Automotive finance company.

A dealership or finance specialist can help you get financed through one of these lenders. A conventional loan company will report your payments to the credit reporting agencies, meaning your credit score will increase if you make your payments on time.

Contact an auto finance professional in your area today.

Arkansas Resources