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The purchase of a new vehicle without a loan or lease is pretty uncommon these days. In most cases, the bank keeps a lien on the vehicle during the course of the loan. They’ll expect you to carry comprehensive insurance, and your interest rate will depend largely on your credit score. To hasten the process, you can apply on the web for financing.

A local Kentucky lending specialist can help you secure your car loan, answering your questions in the process.

Auto Finance Rates in Kentucky

Only a few banks, credit unions, and auto finance websites supply car loan rates based on credit score. Instead, they advertise the lowest rate they offer. In fact, your interest rate differs greatly based on your FICO score, as well as a number of other factors. The rates displayed below are only for informational purposes. These aren’t advertisements, and your exact rate will vary.

Credit Rating New Car Used Car
Excellent 3.0% 3.3%
Good 4.4% 4.6%
Average 6.5% 7.0%
Subprime 8.6% 9.9%
Bad 11.9% 14.3%
Very Bad 13.1% 15.5%

It’s a good idea to know what your credit score is before you ever apply for financing. If you don’t know your fico score, you could pay too much in interest. Go here to check your score.

Used Car Auto Loans in Kentucky

More often than not, loan companies charge slightly higher interest rates for used vehicles. Higher interest rates for pre-owned cars, however, are countered by smaller down payments, monthly payments, and insurance premiums. Below, we look at the costs of financing a car that is brand new versus 1-3 old.

Age Price Rate Months Payment Interest Total Cost
New $21,800 6.00% 60 $421.46 $3,487 $25,287
1 Year $17,440 7.50% 60 $349.46 $3,528 $20,968
2 Years $14,824 7.50% 60 $297.04 $2,999 $17,823
3 Years $12,600 7.50% 60 $252.49 $2,549 $15,149

The majority of cars depreciate 15% per year, so a new car you buy for $21,800 will be worth $17,440 after just one year of ownership. More often than not, you can get a car loan for a car that is up to 10 years old. Mileage constraints may apply.

Poor Credit Car Loans in Kentucky

Has your credit been scarred by bankruptcy, repossession, or other issues like this? Higher FICO ratings generally result in more affordable interest rates, but it’s a good deal more complicated than that. Although subprime credit always results in an increased annual percentage rate, you can now request quotes from an assortment of lenders online.

Whenever possible, you should steer clear of no credit check dealerships. These buy here pay here dealerships are infamous for consumer complaints. The rates are very steep, and the vehicles tend to be overpriced.

You’ll want to steer clear of these dealerships if at all possible, obtaining an auto loan via the web. This is how the majority of people nowadays get approved, and it’s much less expensive over time.

On top of that, you can complete your application online.

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