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For lots of people, the car loan is the main hurdle to purchasing the car they desire. Whether or not you get approved, and what interest rate you’re charged, depends principally on your credit score. Other variables include:

  • Place of residence (Lafayette)
  • Monthly income
  • Cash or trade
  • Occupational history

In most cases, it’s smart to put together your finance package in advance. There are experts happy to help you finance the car you want at an economical rate.

Car Loan Rates in Lafayette

These rates are only for informational purposes. They aren’t advertisements. Actual rates differ.

FICO Rating New Car Used Car
Excellent 3.4% 3.7%
Good 4.6% 5.2%
Average 6.2% 6.9%
Subprime 8.1% 8.5%
Bad 10.8% 11.7%
Very Bad 11.5% 12.8%

Used Car Auto Loans in Lafayette

Car manufacturers are in the business of selling brand new cars and trucks. Savvy consumers, however, typically buy used cars. Below, we review the cost of financing a car or truck that is brand new versus 1-3 old.

Years Old Price Rate Months Payment Interest Total Cost
New $20,800 6.00% 60 $402.12 $3,327 $24,127
1 Year $16,640 7.50% 60 $333.43 $3,366 $20,006
2 Years $14,144 7.50% 60 $283.42 $2,861 $17,005
3 Years $12,022 7.50% 60 $240.90 $2,432 $14,454

A second hand car or truck makes a great option, whether you’re financing or paying cash. Here are the common restrictions on used vehicle financing:

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

Poor Credit Car Loans in Lafayette

Has your credit been marred by chapter 7/13 bankruptcy, repossession, or other issues like this? Improved FICO scores normally result in decreased interest rates, but there is a lot more to the equation. Years ago, consumers had to go from lender to lender, in search of one willing to offer them credit. Fortunately, modern innovation has phased out a lot of this groundwork.

In Lafayette, buy here pay here dealers wind up assisting a lot of the bad credit demographic No, your credit isn’t going to be a concern at this kind of place, but you will end up having to pay a ton in interest for an older car or truck. You will be better off with financing from a traditional bank or credit union. The rates will be cheaper, the terms significantly better, and you have the opportunity to boost your credit score in the process.

Contact an auto finance professional in your area today.

Lafayette Credit Improvement

If you want to lessen your interest rate, you have a few options. First of all, it’s recommended that you address any errors on your credit report. You can pull your credit for free at AnnualCreditReport.com, a service offered by the three major credit bureaus. Lafayette has a variety of credit repair companies to help you correct these kinds of errors, or you can file the paperwork on your own. In most cases, having someone cosign your car loan could also lessen your rate of interest.

Can a Car Loan Improve Your Credit?

A car loan can improve your credit, provided that it meets the following conditions:

  • It’s not supplied by a BHPH dealer.
  • The installments are paid on time, every month.

Buy here pay here dealers do not report to the credit reporting agencies, meaning your credit score will not get any better. It’s impossible to estimate how much you credit score could increase, simply because it will depend on a number of factors, but the improvement is usually substantial.

Lafayette Resources

Credit Unions

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