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Are you considering a new vehicle in Michigan, and need to finance it? It would be ideal if this was easy, but it usually isn’t. Lending companies want a good deal of information before agreeing to approve you for financing. Instead of driving from lender to lender, applying for financing, you can apply right now on the web.

Lenders and dealers will vie to fund your loan, putting you in charge of the financing process.

Auto Finance Rates in Michigan

What will your annual percentage rate be? The truth is, your interest rate can vary hugely based on your FICO score, among other things. The rates displayed below are only for informational purposes. They’re not advertisements, and your precise rate could be very different.

FICO Score New Car Pre-owned Car
Excellent 3.4% 3.8%
Good 4.5% 5.1%
Average 6.1% 7.0%
Subprime 9.2% 9.6%
Bad 12.8% 13.0%
Very Bad 14.1% 14.5%

If you don’t know what your FICO score is, you need to. We suggest this service, where you can check your score at zero cost.

Used Car Loans in Michigan

You’ll find that it is slightly more expensive to finance a second hand car or truck, at least in terms of the rate of interest. Elevated rates of interest for pre-owned vehicles, however, are balanced out by smaller down payments, monthly payments, and insurance costs. Take a look at the comparison below.

Age Price APR Months Payment Interest Total Cost
New $21,200 6.00% 60 $409.86 $3,391 $24,591
1 Year $16,960 7.50% 60 $339.84 $3,431 $20,391
2 Years $14,416 7.50% 60 $288.87 $2,916 $17,332
3 Years $12,254 7.50% 60 $245.54 $2,479 $14,732

It is possible to buy a lot of car for the money if you don’t mind buying it used. Finance companies charge higher interest rates for pre-owned vehicles, but in most situations, you only need 10% down, and the insurance premiums are cheaper.

Poor Credit Car Loans in Michigan

Straight away, loan companies look at when deciding whether to approve you financing. Many of us never check our credit scores, as we’re scared of how bad they may be. However, this can be dangerous. Fortunately, the internet makes it less of a challenge for the non-prime borrower.

If possible, you should avoid going to a no credit check car dealership. These buy here pay here dealers are known for consumer grievances. While you probably won’t have problem when it comes to approval, you’ll get charged handsomely for the privilege.

You will be better off with financing from a bank or loan provider. The advantages are considerable: improved rates, superior service, and if you make your payments on time, an improved credit score.

Contact an auto finance professional near you today.

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