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For many consumers in Paducah, an auto loan is essential to purchasing any new or used car or truck. If you’ve got first-rate credit, this is a hassle-free process. For people with below-average credit, however, it can be a big pain. A lot of finance experts recommend applying for your car loan before stepping foot on the dealer lot, which provides the following benefits:

  • Less time spent at the dealership.
  • Reduced rate of interest.
  • Improved negotiating leverage.

Lending companies and dealerships will vie to finance your credit, putting you in the driver’s seat of the financing process.

Auto Loan Rates in Paducah

Most loan providers don’t provide loan rates in Paducah based on FICO score. Instead, they advertise the cheapest rate they offer. In point of fact, your annual percentage rate can vary hugely based on your credit, among a number of other things. The rates shown below are only for informational purposes. These are not advertisements, and your actual rate could deviate greatly from what’s displayed below.

FICO Score New Car Pre-owned 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%

Used Car Loans in Paducah

New cars are attractive, for sure. However, a used car loan has a great deal of advantages:

  • Smaller percentage down required.
  • More affordable out the door cost.
  • Minimized risk of car poor.

Consider the chart below, showing the costs of car loans for new versus used vehicles.

Years Old Price Rate Months Payment Interest Total
New $29,400 6.00% 60 $568.38 $4,703 $34,103
1 Year $23,520 7.50% 60 $471.29 $4,758 $28,278
2 Years $19,992 7.50% 60 $400.60 $4,044 $24,036
3 Years $16,993 7.50% 60 $340.51 $3,437 $20,431

Once it leaves the dealer lot, a new car loses up to a quarter of its value, and it keeps depreciating every year. A car that cost $29,400 new will only be worth $16,993 after 36 months of ownership. Most loan providers will allow you to finance a pre-owned car up to eight years old, and some have a mileage cap of 100,000 miles.

Bad Credit Auto Loans in Paducah

Credit scores of 680 or less are generally classified as subprime, and those less than 620 are simply considered bad. Simply speaking, your credit score is used to quantify risk. Although below-average credit always leads to an increased interest rate, you can now request quotes from an assortment of loan companies online.

It might seem that a buy here pay here dealership is the quickest solution. These dealerships don’t check your credit, and they offer affordable pre-owned vehicles. No credit checks come at a price: outrageous interest rates, stringent terms, and a limited selection of vehicles.

Preferably, you’ll want to obtain your loan through one of the below loan providers:

  • Bank.
  • Credit union for which you’re eligible.
  • Vehicle loan company.

A dealer or local finance expert can help you secure financing from one of these loan providers. An established lender will report your repayment to the credit bureaus, meaning your credit score will improve if you make your payments as agreed.

Go here to apply online.

Minimizing Your Interest Rates

Are you stressing that your rate will be too high? Fixing any credit report discrepancies can improve your credit score substantially. Fortunately, it’s free to check your credit report annually at

It will take 30-60 months to get such problems resolved, after which time you may see an improvement in your credit score. Additionally, cosigners, down payments, and shorter-term loans all bring about cheaper interest rates.

Can a Car Loan Improve Your Credit?

Your payment history plays a major role in determining your credit score. Paying down a financed vehicle strengthens that payment history, increasing your credit score along the way. If you decide to do business with a BHPH car lot, you won’t have this opportunity. Ensure that you sign up for auto-pay, as this will prevent you from skipping payments.

Paducah Resources

Credit Unions

Credit UnionLocationZip CodeTelephone
C-PlantP.O. Box 925042002(270) 554-0287
C-Plant3201 Wayne Sullivan Dr42003(270) 442-0789
C-Plant4900 Village Square Dr42001(270) 450-0281
C-Plant2500 Lone Oak Rd42003(270) 554-0287
I.B.E.W. Local 8164515 Clarks River Rd42003(270) 898-3722
Mccracken County Teachers270 Bleich Rd42003(270) 554-9941
PaducahPO BOX 42642002(270) 443-5261
Paducah2620 Lone Oak Rd42001(270) 554-0280
Paducah2450 New Holt Rd42001(270) 408-4800
Paducah333 Tully St42003(270) 443-2361
Paducah1600 Clark St42003(270) 443-5261
Paducah City EmployeesP O BOX 226742002(270) 444-8510
Paducah City Employees300 S 5th St42003(270) 444-8510
Paducah TeachersPO Box 255042002(270) 444-5638
Paducah Teachers800 Caldwell St42003(270) 444-5638
W B H Employees2501 Broadway St42001(270) 575-2776