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For lots of buyers, getting financed is the main obstacle to purchasing the car or truck they desire. Unfortunately, getting financing can be a considerable pain, especially if your credit isn’t great. Instead of sweating it out at the dealer or bank, you can apply for an auto loan on the web.

A local finance professional can walk you step-by-step through the process, ensuring you obtain financing from a lender that offers affordable rates.

Auto Loan Rates in Virginia

Down below we’ve got rates you can expect at different credit levels. These are not to be considered advertisements. Your precise rate of interest will be determined by a number of variables, such as lender, down payment, average income, length and type of loan, etc.

FICO Rating New Car Pre-owned Car
Excellent 3.3% 3.5%
Good 4.7% 4.8%
Average 6.9% 7.3%
Subprime 9.8% 10.5%
Bad 13.3% 14.4%
Very Bad 13.8% 15.5%

Used Car Financing in Virginia

Yes, the loan rates for a used vehicle are more expensive than those for a brand new one. Elevated rates for pre-owned vehicles, however, are balanced out by lower down payments, monthly installments, and insurance costs. You can finance a low-mileage pre-owned vehicle for a small fraction of the cost of a brand new one.

Age Price APR Months Payment Interest Total Cost
New $22,750 6.00% 60 $439.82 $3,639 $26,389
1 Year $18,200 7.50% 60 $364.69 $3,681 $21,881
2 Years $15,470 7.50% 60 $309.99 $3,129 $18,599
3 Years $13,150 7.50% 60 $263.49 $2,660 $15,809

Many cars depreciate 15% per year, so a new car you buy for $22,750 will be worth $18,200 after just one year of ownership. Generally, you can get a car loan for a vehicle that’s up to ten years old. Mileage restrictions may apply.

Poor Credit Car Loans in Virginia

Most loan companies favor consumers with prime credit scores, as auto loans involve lots of money. If you’ve got a credit score of 680 or higher, securing a car loan ought to be simple, but approval and annual percentage rate both become considerations at the bottom rungs of the credit ladder. Like any major investment, it’s better to speak with someone experienced in the process. It might seem that a buy here pay here dealer is the simplest solution. These dealerships don’t look at your credit, and they offer affordable, used cars and trucks. Sure, your credit won’t be an issue, but you will end up coughing up a boatload in interest for an outdated car or truck. If at all possible, you want to get your loan through one of the following loan companies:

  • Regional or local bank.
  • Credit union in your area.
  • Auto loan company.

A dealership or finance expert will help you secure financing from one of these lenders. This is the way a lot of consumers get approved nowadays, and it’s much more affordable in the end.

Go here to apply online.

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