Harrisburg (PA) Auto Loans

Getting a new car or truck without a loan or lease is quite uncommon in this day and age. For those who have great credit, this is a straightforward process. If you’ve got unfavorable credit ratings, however, it can be a serious pain. Typically, it’s smart to put together your auto loan beforehand.

A finance specialist can guide you step by step through the process, ensuring you secure the auto loan you need from a lender that offers affordable rates of interest.

Auto Finance Rates in Harrisburg

These rates are only for informational purposes. They are not advertisements. Precise rates differ.

Credit Rating	New Car	Used Car
Excellent	3.2%	3.6%
Good	4.4%	4.8%
Average	6.3%	6.8%
Subprime	8.6%	9.9%
Bad	12.0%	13.8%
Very Bad	13.2%	15.1%

Used Car Loans in Harrisburg

Options like 0% finance and zero down can be found on new cars when you’ve got great credit. That said, a used auto loan has a great deal of benefits:

• Smaller down payment needed.
• Lower purchase price.
• Lesser risk of being upside down.

Below, we review the cost of a loan for a car or truck that is new versus 1-3 old.

Years Old	Price	Rate	Months	Payment	Interest	Total
New	$16,800	6.00%	60	$324.79	$2,687	$19,487
1 Year	$13,440	7.50%	60	$269.31	$2,719	$16,159
2 Years	$11,424	7.50%	60	$228.91	$2,311	$13,735
3 Years	$9,710	7.50%	60	$194.58	$1,964	$11,675

As you can see, the car financed new for $16,800 is worth only $9,710 after 36 months. Generally, you can finance a car that is up to 10 years old. Mileage restrictions often apply.

Poor Credit Car Loans in Harrisburg

Less-than-perfect credit can make it tough to finance a car, but it isn’t out of the question. To put it succinctly, your FICO score is used a measure of risk. Usually, it’s better to consult a professional who can lead you through the process.

Buy here pay here financing is a second option. While you won’t have any trouble when it comes to approval, you’ll pay a king’s ransom for the privilege. It’s best to steer clear of these dealers if possible, obtaining a car loan on the web. The down payments are cheaper, the same as the annual percentage rates, and the service is considerably better.

Contact an auto finance professional in your area today.

Minimizing Your Interest

Interest can take up a considerable percentage of your payment each month, particularly when your FICO score isn’t top notch. First of all, it’s recommended that you resolve any mistakes on your credit report. Fortunately, it’s free to check your credit report annually at annualcreditreport.com.

Addressing any inaccuracies–a relatively simple process–could bring about big improvements in your credit score. Offering a larger down payment or adding a cosigner who has a good credit score can also decrease your rate of interest.

Can a Car Loan Improve Your Credit?

If you want to boost your credit score, an auto loan will help–if you pay each installment as arranged. There is no instant surge in your FICO score. Rather, it should increase steadily over time. Make sure you enroll in automatic payments, as this will keep you from missing payments.

Harrisburg Resources

• PA Driver & Vehicle Services: http://www.dmv.state.pa.us/
• PA Department of Banking and Securities: http://www.dobs.pa.gov/Businesses/Banking/Banks/Pages/default.aspx#.Veh4Tc7eQ3g

Credit Unions