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:
- 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|
|Term||60 months||48 months|
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|
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|
|Total with Interest||$15,563||$15,327||$15,146|
Dealerships in Austin, TX
|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.