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
Credit Union | Street address | Zip Code | Phone |
---|---|---|---|
Allegacy FCU | 1900 Randolph Rd | 28207 | (336) 774-8161 | Blue Flame | PO Box 33068 | 28233 | (704) 523-0075 | Blue Flame | 4301 Yancey Rd | 28217 | (704) 523-0075 | Carolina Cooperative | 6502 McMahon Drive | 28226 | (704) 543-8901 | Carolina Cooperative | 2110 Crown Centre Dr | 28227 | (704) 845-4031 | Carolina Postal | 3601 Mulberry Church Rd | 28228 | (704) 392-3418 | Carolinas Telco | PO BOX 668467 | 28266 | (704) 391-5600 | Carolinas Telco | 2600 Sharon Rd W | 28210 | (704) 391-5600 | Carolinas Telco | 5023 Central Ave | 28205 | (704) 391-5600 | Carolinas Telco | 300 S Brevard St | 28202 | (704) 391-5600 | Carolinas Telco | 2821 Crisman St | 28208 | (704) 391-5600 | Charlotte Fire Department | 2100 Commonwealth Ave | 28205 | (704) 375-3950 | Charlotte Metro | 718 Central Ave | 28204 | (704) 375-0183 | Charlotte Metro | 2732 Ashley Rd | 28208 | (704) 375-0183 | Charlotte Metro | 4525 Sunset Rd | 28216 | (704) 375-0183 | Charlotte Metro | 11228 Ardrey Kell Rd | 28277 | (704) 375-0183 | Charlotte Metro | 1835 West W T Harris Boulevard | 28262 | (704) 375-0183 | Clearview | 2830 Boyer St | 28208 | (800) 926-0003 | Eds | 2701 Westport Rd | 28228 | (704) 391-0678 | First Legacy Community | 431 Beatties Ford Rd | 28216 | (704) 375-5781 | First Legacy Federal Credit Union | Po Box 16285 | 28297 | (704) 375-5781 | Founders | 10600 S Commerce Blvd | 28273 | (704) 588-6726 | Hamlet | 6101 Idlewild Rd | 28212 | (704) 535-8300 | Latino Community | 5933 South Blvd | 28217 | (704) 553-0386 | Latino Community | 4801 E Independence Blvd #103 | 28212 | (704) 531-0201 | Latino Community Credit Union | 4801 E Independence Blvd | 28212 | (704) 531-0201 | Piedmont Advantage Credit Union | 4700 Yorkmont Rd | 28208 | (704) 359-8080 | Piedmont Advantage Credit Union | 5501 Josh Birmingham Pkwy | 28208 | (704) 359-4373 | Self Help Credit Union | 926 Elizabeth Ave | 28204 | (704) 409-5900 | Sharonview | 5033 South Blvd | 28210 | (704) 527-7482 | Sharonview | 7422 Carmel Executive Park Dr #100 | 28226 | (704) 973-2500 | Sharonview | 13900 S Lakes Dr | 28273 | (704) 969-6184 | Sharonview Credit Union | 14301 S Lakes Dr | 28273 | (704) 504-5355 | Sharonview Federal Credit Union | 521 Meridian Corporate Center | 28208 | (704) 969-6700 | Shepherds | 5525 Albemarle Rd | 28212 | (704) 625-1469 | State Employee Credit Union | 1516 Alleghany St | 28208 | (704) 399-3987 | State Employees' | 10120 Couloak Dr | 28216 | (704) 392-0438 | State Employees' | 901 N Wendover Rd | 28211 | (704) 366-4042 | State Employees' | 6630 Executive Cir | 28212 | (704) 568-5980 | State Employees' | 1130 E 3rd St | 28204 | (704) 376-9133 | State Employees' | 4720 Airport Center Pkwy | 28208 | (704) 394-4844 | State Employees' | 6201 Fairview Rd | 28210 | (704) 551-0612 | State Employees' | 8605 University City Blvd | 28213 | (704) 549-5822 | State Employees' | 10820 S Tryon St | 28273 | (704) 504-8796 | State Employees' | 10910 Ardrey Kell Rd | 28277 | (704) 540-1159 |