Auto financing makes it possible to shop for a car that you wouldn’t be able to buy in cash. Normally, the loan provider keeps a lien on the vehicle until the loan is fully repaid. They will require you to carry comprehensive insurance until the lien is released, to ensure that you will have the money to pay off the vehicle in case of any sort of accident. Instead of spending hours at the car lot or finance company, you can request your car loan on the web.
Lenders and dealerships will fight to finance your credit, putting you behind the wheel of the financing process.
Auto Finance Rates in Connecticut
Want to know what annual percentage rate you will be charged? The truth is, your annual percentage rate varies greatly based on your credit, among a range of other things. The rates shown below are only for informational purposes. They aren’t advertisements, and your exact rate could deviate greatly from what’s displayed below.
| Credit Score | New Car | Pre-owned Car |
|---|---|---|
| Excellent | 3.0% | 3.3% |
| Good | 4.2% | 4.4% |
| Average | 6.8% | 7.1% |
| Subprime | 9.8% | 9.9% |
| Bad | 13.9% | 14.2% |
| Very Bad | NA | 14.3% |
Used Car Loans in Connecticut
Options like zero percent car loans and no money down are available on new cars for those who have excellent credit. Mind you, financing a second hand car or truck is a better value, since the total cost will be substantially less. Below, we review the costs of financing a car that is new versus 1-3 old.
| Age | Price | Rate | Months | Payment | Interest | Total Cost |
|---|---|---|---|---|---|---|
| New | $17,200 | 6.00% | 60 | $332.52 | $2,751 | $19,951 |
| 1 Year | $13,760 | 7.50% | 60 | $275.72 | $2,783 | $16,543 |
| 2 Years | $11,696 | 7.50% | 60 | $234.36 | $2,366 | $14,062 |
| 3 Years | $9,942 | 7.50% | 60 | $199.21 | $2,011 | $11,953 |
For many of us, a used car is a much better option. Typically, you can get a car loan for a car that’s up to a decade old. Mileage restrictions often apply.
Poor Credit Car Loans in Connecticut
Less-than-perfect credit will make it tough to finance a car, but it isn’t impossible. Better credit scores generally result in reduced rates, but it’s a good deal more complex than that. Although less-than-perfect credit always leads to an increased annual percentage rate, you can now request quotes from several different companies online.
In Connecticut, buy here pay here dealers wind up serving much of the bad credit demographic Having no credit check comes at a price: excessive rates of interest, strict conditions, and high-priced, well-used vehicles. It’s better to keep away from these dealerships when you can, and obtain an auto loan online. This is how many individuals get approved, and it’s much more affordable over the long haul.
Go here to apply online.
Connecticut Resources
- CT Department of Motor Vehicles: http://www.ct.gov/dmv/site/default.asp
- Connecticut Department of Banking: http://www.ct.gov/dob/site/default.asp