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The vast majority of new vehicles are financed or leased. Often, your car loan will be arranged in the dealer’s office, but this can take a long time. Countless finance professionals encourage obtaining your financing in advance, which provides several benefits:

  • Less time wasted at the dealership.
  • Cheaper interest rates.
  • Greater bargaining power.

An auto loan expert can lead you through the process, helping you obtain the car loan you need from a company near you.

Car Loan Rates in Houston

Want to know what annual percentage rate you will be charged? Truth be told, your annual percentage rate varies widely based on your credit, among other things. The rates displayed below are only for informational purposes. They aren’t advertisements, and your precise rate could be very different.

FICO Score New Car Used 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 Houston

Automakers are really only interested in selling brand new cars. Nonetheless, a pre-owned car auto loan has a wealth of advantages, like:

  • Just 10% down required.
  • Lower purchase price.
  • Reduced risk of negative equity.

Take a look at the chart below, depicting the costs associated with car loans for new versus pre-owned cars and trucks.

Years Old Price APR Months Payment Interest Total
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

Are you considering a used car or truck? Below are the most popular limitations on used car loans:

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

Poor Credit Auto Loans in Houston

Ordinarily, offers such as no money down are unattainable if your credit score has seen better days. Better FICO ratings usually lead to reduced rates, but it’s considerably more complex than that. Older generations had to go from bank to bank, looking for one prepared to offer them financing. Fortunately, technological advances have gotten rid of most of this legwork.

It may seem that a buy here pay here dealership is the simplest choice. These kinds of dealerships don’t review your credit, and they offer low-cost used vehicles. No credit checks come at a price: inflated rates, a number of conditions and terms, and overpriced vehicles.

In most cases, it’s much easier to deal with a regular bank, credit union, or lender. A regular bank or finance company will report your repayment to the credit agencies, which means your credit score will increase as long as you make your payments as agreed.

Best of all, you can submit your application online.

Limiting Your Interest Rate

Interest can take up a considerable part of your payment each month, especially when your credit score isn’t the best. First off, you’ll want to search your credit report for inaccuracies. Many consumers don’t know that, once each year, you can check your credit report completely free via annualcreditreport.com. Disputing errors is fairly simple. You can do it on your own, or enlist one of Houston’s credit repair solutions to assist you. In some cases, adding a cosigner to your auto loan could also lessen your rate of interest.

Zero Down Auto Loans in Houston

The cash you need to finance a new car could be as much or even more than the price of a pre-owned one. A lot of banks will do 100% financing, in some cases more, but the buyer must have the very best credit. By applying online, it’s possible to maximize your chances of locking down this kind of a deal, as dealers can view your preferred down payment ahead of time. If you leave the down payment field empty, the finance consultant will know you want to finance a car without a down payment.

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