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In Mount Vernon, most folks purchase their cars and trucks via financing, as it’s challenging to save enough money for an outright purchase. Unfortunately, the process of securing financing can be a serious pain, especially when you have below-average credit. Fortunately, it’s simple to request financing on the web, which can save you a lot of time and effort.

You could be driving of a new car in no time flat.

Car Loan Rates in Mount Vernon

The rates below should not be seen as anything but estimates to give you a notion of what interest rate you can expect given where you are and your FICO score. Variables that impact your precise rate of interest include your credit score, place of residence, your history of employment, the type of vehicle (new or used), and the magnitude of your loan.

FICO Rating New Car Pre-owned Car
Excellent 3.4% 3.6%
Good 5.0% 5.0%
Average 6.8% 6.8%
Subprime 8.7% 8.6%
Bad 13.0% 12.5%
Very Bad 13.4% 14.2%

Used Auto Loans in Mount Vernon

New cars and trucks have the cheapest rates of interest. Savvy consumers, however, usually buy pre-owned cars. Have a look at the chart below, depicting the various costs of auto loans for new versus used cars and trucks.

Age Price APR Months Payment Interest Total Cost
New $26,200 6.00% 60 $506.52 $4,191 $30,391
1 Year $20,960 7.50% 60 $420.00 $4,240 $25,200
2 Years $17,816 7.50% 60 $357.00 $3,604 $21,420
3 Years $15,144 7.50% 60 $303.45 $3,063 $18,207

Many cars lose roughly 15% of their value each year, so a new car you buy for $26,200 will be worth $20,960 after just one year of ownership. Here are the most common limits on auto loans for used cars:

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

Bad Credit Car Loans in Mount Vernon

Are you struggling with a credit score in the mid to low 600s? The higher your credit score, the wider array of options you’ll have. In the old days, shoppers had to go from bank to bank, attempting to locate one willing to approve them for financing. Fortunately, technological advances have phased out most of this groundwork.

Buy here pay here financing is another option. While you shouldn’t have any trouble getting financed, you’ll be taxed a lot for the privilege. It’s best to keep clear of these dealerships when possible, and obtain a car loan online. A regular loan provider will report your payments to the credit bureaus, meaning your credit score will increase if you make your payments on schedule.

Contact an auto finance professional in your area today.

Minimizing Your Interest Rate

Interest can take up a major part of your monthly payment, especially if your credit score isn’t the highest. Is your credit report marred by any errors? These can damage your credit score quite drastically. Fortunately, you can check your credit once a year, for free, at annualcreditreport.com.

Generally, it takes 1-2 months to get any discrepancies corrected. If you haven’t got a good credit score, having somebody with a good credit rating cosign your car loan could give you a more affordable interest rate.

Can a Car Loan Improve Your Credit?

A large percentage of your credit score is based on payment history. Paying down a financed vehicle bolsters that payment history, improving your credit score in the process. There is no instant increase in your FICO score. Rather, it should increase slowly as time passes. Most lenders offer automated bill-pay, which is essential to making your payments by the due date each and every month.

Mount Vernon Resources

Credit Unions

Credit UnionLocationZipTelephone
Genfed Federal Credit Union800 S 42nd St62864(618) 244-1077
Genfed Federal Credit Union108 S 42nd St62864(618) 244-1077
Jeff-Co Schools3100 Broadway St62864(618) 244-5197