Auto Loans in Baytown (TX)

In Baytown, you have several options for obtaining an auto loan, but not many companies have refined credit approval like ours has. Our expertise in the field is first rate, and we are experts in getting you approved by the lender who suits you best. We put you in touch with a credit specialist who can assist you through the process.

The Decision: New or Used Car in Baytown

Through our vast network of lenders and dealers, you can choose to finance a new or used vehicle. Have you determined which is right for you? Brand new cars and trucks are susceptible to higher rates of depreciation, which means that negative equity is a more significant risk. In order to keep your loan amount in line with the value of your vehicle, lenders normally require a 20% down payment, versus the 10% required for a used car. On the flip side, interest rates for new cars are lower, and for people with a favorable credit record, you may qualify for a zero down car loan. If you’re unsure, a vehicle finance specialist could help you establish whether a new vehicle is the right choice.

Used Vehicle Financing in Baytown

In today’s market, a car or truck that has some miles under its belt is a far better purchase than a brand new one. Since they have been through that first depreciation, used cars call for less costly down payments, generally only 10% instead of the 20% typical of new cars. Finance companies do have restrictions as far as miles and age, however. Vehicle must have a maximum of 100,000 miles and be no more than 7 years old. All in all, you may deserve a pat on the back for buying a preowned car or truck.

Baytown Bad Credit Car Loans

A bad credit score results in the following:

  • Elevated rates of interest.
  • More significant down payments.
  • Shorter financing terms.

You don’t want to deal with having a new line of credit declined. As a result, it is essential to locate a lender or dealer in Baytown that specializes in non-prime credit.

We can help. We are known for serving customers on every end of the credit spectrum, helping them secure the loans they need.

Dealerships in Baytown That Finance Bad Credit

If you have good credit, you spend a majority of your time at the dealership viewing vehicles. However, with bad credit, you will focus more on your interest rate, lending terms, and down payment.

To get the lowest rate you possibly can, make sure to inquire about the buy rate, or the rate offered by the lender before the dealer adds extra points for lining up the loan. Be sure that your monthly payment is not beyond 10% of your income. For a person with the Baytown average of $1,804 per month, this would be $180. The calculation is simple enough. Simply multiply your monthly income by .10 for your own maximum payment.

Buy Here Pay Here Car Lots in Baytown, Texas

People young and old resort to buy here pay here dealers, also called in house financing car dealers, convinced that they can only get approved at one of these places. Rarely is this the case. A lot of dealer finance is indirect, in that dealers go through banks and lenders with whom they have relationships to provide the loans. In contrast, buy here pay here dealers handle everything on site. They provide car loans themselves.

You will discover that used cars and trucks are the only ones you can buy, and these are not no money down cars. In most cases, the down payment matches the vehicle’s value on the wholesale market, and you could wind up paying at least 20% APR. Is elevating your credit a concern for you? If so, you are better off applying through us, as BHPH dealers can’t help you improve your credit.

Securing Funds for a Vehicle in Baytown: Loan Amounts

The maximum loan you can obtain will depend on the amount of money you make, and how strong your credit score is. The following figures are based of of an income of $1,804 a month, the average among Baytown residents.

Credit Income Factor Amount
Good Credit 10 $18,040
Fair Credit 9 $16,236
Slow Credit 8 $14,432
Bad Credit 7 $12,628
Very Bad Credit 6 $10,824

How much you can borrow, and how much is a good idea, are two different things. Check out this table demonstrating what car you can afford with a monthly payment of $144, 20% down payment, and 60 month term.

Great Credit Fair Credit Poor Credit
Car Payment $144 $144 $144
Rate 3.50% 7.00% 10.00%
Sticker Price $9,917 $9,111 $8,491
Money Down $1,983 $1,822 $1,698
Amount Borrowed $7,933 $7,288 $6,792
Total Interest $726 $1,371 $1,867
Total Paid $10,643 $10,481 $10,357