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Are you interested in a new or pre-owned vehicle in Rhode Island, and need to secure a car loan? Quite often, your financing will be arranged with the dealer’s help, but this can take a lot of time. Why would you want to spend your time applying for financing at the finance company or car dealership when you can get approved right here online? You will find specialists standing by, ready to help you get a car loan at a reasonable rate.

Auto Finance Rates in Rhode Island

Most companies only advertise the lowest rate they have, only available to individuals with superior credit scores. Truth be told, your rate of interest varies greatly based on your credit score, among a number of other things. The rates shown below are only for informational purposes. They are not advertisements, and your exact rate will vary.

Credit Score New Car Used Car
Excellent 3.1% 3.5%
Good 4.6% 4.9%
Average 7.7% 8.0%
Subprime 11.4% 11.8%
Bad 14.8% 15.1%
Very Bad 15.0% 15.3%

Used Car Loans in Rhode Island

It’s true that the rates of interest for a pre-owned vehicle are higher than the rates for a new one. Then again, to put yourself in the strongest position financially, it’s better to finance a used car. The numbers speak for themselves.

Age Price APR Months Payment Interest Total Cost
New $32,600 6.00% 60 $630.25 $5,215 $37,815
1 Year $26,080 7.50% 60 $522.59 $5,275 $31,355
2 Years $22,168 7.50% 60 $444.20 $4,484 $26,652
3 Years $18,843 7.50% 60 $377.57 $3,811 $22,654

In only one full year on the road, the $32,600 new car is worth only $26,080, and only $18,843 after three years. Let’s consider the most popular restrictions on used vehicle financing:

  • Car no older than 7-10 years.
  • Mileage no higher than 100,000.
  • Purchased through dealer, not private party.

Poor Credit Car Loans in Rhode Island

Credit scores of 680 or less are typically classified as subprime, and those below 620 are simply bad. Basically, assuming you have below-average credit, you can expect an interest rate upwards of 10%. Years ago, shoppers had to go from one lender to the next, in search of one able to offer them credit. Fortunately, technological advances have streamlined much of this legwork. Of course, you have to be alert for predatory practices. This is especially the case if you end up with a buy here pay here car lot. The drawbacks are noteworthy: exorbitant interest rates and various stipulations.

You should stay away from these dealers when possible, and apply for an auto loan on the web. The down payments are less expensive, as are the rates, and the service is typically much better.

Go here to apply online.

Rhode Island Resources