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Have you been looking to buy a new or used car in Texas, and need a car loan? For people with outstanding credit, this is a pretty simple process. For those who have poor credit, however, it can be a huge pain. Instead of driving from one company to another, applying for financing, you can submit one application online. Enjoy the convenience of having a local Texas financing expert lead you through the car-buying process. Even better, there’s no charge to apply.

Auto Finance Rates in Texas

Most banks only advertise the lowest rate they offer, limited to people with ideal credit. The reality is, your interest rate varies widely based on your credit, as well as a number of other variables. The rates displayed below are only for informational purposes. These aren’t advertisements, and your actual rate will vary.

Credit Rating New Car Pre-owned Car
Excellent 3.3% 3.6%
Good 4.5% 4.7%
Average 6.3% 7.0%
Subprime 9.3% 9.5%
Bad 13.2% 13.7%
Very Bad 14.1% 15.8%

Used Car Loans in Texas

The rates of interest are higher on pre-owned vehicles, since they introduce a somewhat higher risk of maintenance trouble. Having said that, financing a second hand car is a better value, given that the sum total will be a lot less. Have a look at the table below.

Age Price APR Months Payment Interest Total Cost
New $18,000 6.00% 60 $347.99 $2,879 $20,879
1 Year $14,400 7.50% 60 $288.55 $2,913 $17,313
2 Years $12,240 7.50% 60 $245.26 $2,476 $14,716
3 Years $10,404 7.50% 60 $208.47 $2,104 $12,508

For most of us, a used car is the best option. As a rule, you can get an auto loan for a vehicle that is up to a decade old. Mileage limits often apply.

Poor Credit Car Loans in Texas

As a rule, loan providers want shoppers with solid credit, as auto loans involve a lot of money. If you have a credit score of 680 or higher, you should have no issue locking down financing, but approval and annual percentage rate both become hassles at the bottommost rungs of the credit spectrum. Older generations had to go from lender to lender, looking for one prepared to offer them financing. Fortunately, technological advances have streamlined a lot of this groundwork. Buy here pay here financing is another option. The cons are sizeable, including extortionate annual percentage rates and inflexible terms.

Almost always, it’s best to find a regional bank or finance company. The rates will be less expensive, the terms improved, and you have the opportunity to raise your credit score at the same time.

Contact an auto finance professional near you today.

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