Charlotte (NC) Auto Loans

The purchase of a new car without a loan or lease is pretty unusual these days. Normally, the lender keeps a lien on the car or truck until it is fully paid off. You are required to carry full coverage insurance during this time, and your interest rate will depend largely on your credit score. If you need to secure the most affordable rate of interest available, we can help. A finance professional can lead you through the process, ensuring you secure financing from a company you can trust.

Auto Loan Rates in Charlotte

Worried about the rate of interest you’ll be charged? In point of fact, your interest rate differs greatly based on your credit, not to mention other variables. The rates displayed below are only for informational purposes. They aren’t advertisements, and your precise rate could deviate vastly from what’s displayed below.

Credit Rating	New Car	Pre-owned Car
Excellent	3.2%	3.5%
Good	4.5%	4.9%
Average	6.2%	6.4%
Subprime	9.3%	10.1%
Bad	12.8%	14.8%
Very Bad	13.2%	15.5%

Used Car Financing in Charlotte

New cars are enticing, needless to say. Smart buyers, however, usually go for used cars. Consider the comparison below.

Years Old	Price	Rate	Months	Payment	Interest	Total Cost
New	$22,500	6.00%	60	$434.99	$3,599	$26,099
1 Year	$18,000	7.50%	60	$360.68	$3,641	$21,641
2 Years	$15,300	7.50%	60	$306.58	$3,095	$18,395
3 Years	$13,005	7.50%	60	$260.59	$2,631	$15,636

After just one year of driving, the $22,500 new car is worth only $18,000, and only $13,005 after three years. Auto loans for used cars come with slightly higher interest rates, but in many instances, you only need 10% down, and the insurance costs are less expensive.

Poor Credit Auto Loans in Charlotte

In the world today, poor credit is quite common. There is nothing more humiliating than being declined by the car dealership. Before the net, you had to agree to whatever annual percentage rate and provisions they gave you. Today, there are better ways to get approved.

It’s best to avoid turning to a no credit check dealership. These buy here pay here dealers are known for aggressive sales tactics. The rates border on extortionate, and the cars and trucks are likely to be overpriced. Instead, it’s smart to look for the loan you need via the internet. An established bank or finance company will report your repayment to the credit reporting agencies, so your credit score will improve as long as you keep making your payments as agreed.

Best of all, you can submit your application online.

Minimizing Your Interest Rate

Besides selecting a more affordable car or truck, the best way to reduce your payment amount is by boosting your FICO score. First, you need to resolve any errors on your credit report. Lots of folks don’t realize that, once a year, you can check your credit report at zero cost via www.annualcreditreport.com. You can challenge any discrepancies on your own, or employ a company to assist you. Providing a more substantial down payment or the addition of a cosigner who’s got solid credit could also trim your rate of interest.

Can a Car Loan Improve Your Credit?

An auto loan can improve your credit score, if it meets the following guidelines:

• It is not offered by a buy here pay here dealer.
• The payments are made promptly, month after month.

There’s no direct increase in your FICO score. Rather, it should increase progressively as time goes on. Most lenders offer automated payment solutions, which are key to keeping current on your payments.

Charlotte Resources

• NC Division of Motor Vehicles: http://www.ncdot.gov/dmv/
• NC Office of the Commissioner of Banks: http://www.nccob.org/public/

Credit Unions