Auto Loans in Austin (TX)

If you’re an Austinite in search of a new car, we make it easy to apply for financing through our extensive network of Austin-Round Rock dealers and lenders. Once you apply, we will match you with a local lending specialist who can guide you through the process step-by-step. It really is tough to envision a more convenient way to line up the financing required for your new car, whether you have good credit or bad.

The Decision: New or Used Car in Austin

There are substantial advantages to purchasing a brand new car, from lower loan rates to lengthy repayment terms. On the other hand, we like to give it to you straight here at Longhorn Auto Finance, and that means telling you there are indeed drawbacks to new cars. These include:

Austin, TX skyline
Photo: LoneStarMike
  • Extreme loss of value.
  • More significant upfront investment.
  • Bigger down payments expected.
  • Negative equity is a larger risk.

Having said that, lenders regard new vehicles as less risky than used ones, which means it could be easier to get a new auto loan if you’ve got a bad credit score.

Buying a Used Car in Austin

Used vehicles offer many advantages not available from new ones. As they have undergone that first drop in value, preowned cars necessitate less expensive down payments, generally just 10% as opposed to the 20% typical of new cars. If you are under water on a used car, it typically won’t be for as long. To help you decide whether a new or used car loan meets your needs, we have included this helpful chart. These estimates rely on the following assumptions:

  • New price of $26,380.
  • Used vehicle is two years old.
  • Good credit score.
  • Down payment of 20% for new car, 10% for used.
  • Fixed APR.
New Car Used Car
Price $26,380 $13,190
Down Payment $5,276 $1,319
APR 5.00% 7.50%
Term 60 months 48 months
Monthly Payment $398.26 $287.03
Interest $2,792 $1,906
Total Paid $29,172 $15,096

Considerations for People in Austin with Bad Credit

There are an array of things which can bring about a bad credit score: unpaid bills, foreclosure, going bankrupt, and more. You don’t want to deal with being turned down for a loan, so it is essential to get in touch with a lender or dealer in Austin that provides auto loans for subprime credit. When you apply online through Longhorn Auto Finance, we work to place your application with a lender or dealer in Austin who wants to get you behind the wheel. Auto loans can indeed help your credit ratings. Just be sure you make each of the payments without being past due.

Can I Refinance Down the Road?

Believe it or not, you may be able to refinance your car or truck once your score has increased amply. Selecting the ideal payment amount is crucial. As an example, suppose you earn $2,638 per month, the average for Austin residents.

  • Low Payment: $132 (5%)
  • Intermediate Payment: $211 (8%)
  • Maximum Payment: $264 (10%)

Buy Here Pay Here Dealers in Austin, Texas

Thinking about going to a buy here pay here dealer for a car that could be financed? Ordinarily, there are considerably better options. These dealers will approve almost anybody, regardless of their credit, but there are negatives. Regrettably, you can expect excessive annual percentage rates, huge down payments, and cars and trucks that are too expensive for the kind of shape they’re in. Is strengthening your credit one of your goals? Then you should contact a finance specialist through us, seeing as BHPH dealers won’t help you in rebuilding your credit.

How Much Can You Borrow for Your Vehicle?

Austin has been listed by Forbes as one of the best cities in the country for jobs, and this employment advantage is reflected in the city’s high average income–a good bit higher than neighboring cities like San Antonio. Of course, the higher your income, the more you can borrow. The following figures incorporate an income of $2,638 monthly, the average in Austin, to give you an idea of how much you can borrow based on your income.

Credit Income Factor Amount Borrowed
Good Credit 10 $26,380
Average Credit 9 $23,742
Slow Credit 8 $21,104
Bad Credit 7 $18,466
Terrible Credit 6 $15,828

Keep in mind, it’s a mistake to finance a more expensive car than you need, simply because you are able to.

How Much Car You Can Afford at $211 per Month

Have a look at this chart revealing what car can be afforded with a payment per month of $211, 20% down payment, and 60 month term.

Prime Credit Okay Credit Poor Credit
Car Payment $211 $211 $211
Loan Rate 3.50% 7.00% 10.00%
Years 5 5 5
Vehicle Price $14,501 $13,322 $12,416
Down Payment $2,900 $2,664 $2,483
Total Interest $1,062 $2,004 $2,730
Total with Interest $15,563 $15,327 $15,146

Dealerships in Austin, TX

Dealer Address Zip Code
Town North Nissan 9150 Research Blvd 78758
Maxwell Ford 5000 S Interstate 35 78745
Town North Nissan 9160A Research Blvd 78758
Capital Kia 13573 N Highway 183 78750
Nyle Maxwell Dodge Chrysler Jeep 13401 Ranch Road 620 N 78717
Charles Maund Toyota 8400 Research Blvd 78758
BMW Of Austin 7011 Mcneil Dr 78729
Henna Chevrolet, L.P. 8805 N Interstate 35 78753
Austin Infiniti 8140 Burnet Rd 78757
South Point Nissan 4914 S Interstate 35 78745
Fiat Of Austin 11011 Domain Dr 78758
Covert Cadillac 11750 Research Blvd 78759
Freedom Auto Sales 5410 Airport Blvd 78751
Covert Buick 11750-C Research Blvd 78759

Ready to Get Approved?

Our company is your trusted source for auto loans in Austin. We will place your application with a dealer or lender located in Austin.