Auto Loans in Dallas (TX)

Dallas TXSearching for an auto loan in Dallas? Search no further. We enable you to get your credit approved ahead of time, rather than waiting until you’re in the dealer’s F&I office. The key is our online application, designed to be completed in under three minutes. You’ll enjoy the convenience of working with a dedicated financing specialist who can answer your questions and arrange each detail of your loan, then schedule an appointment for you to pick out your car at a Dallas-area dealer.

Dallas Car Loans with Bad Credit

Less-than-perfect credit has consequences, which generally include:

  • Steeper rates of interest.
  • Greater down payments.
  • Shortened repayment terms.

Needless to say, you don’t want to spend your time looking for a dealer or finance company in Dallas that works with credit scores that aren’t perfect. The good news is, we are dedicated to serving people all across the credit spectrum, helping them secure the loans they need.

Dealerships for Bad Credit in Dallas

Discussing your auto loan, not picking out a new vehicle, is the first priority at dealerships that accept bad credit. To verify that your application details are correct, you will typically need to provide proof of income by means of pay stubs or income tax returns, as well as a lease or electricity bill with your street address on it. Your dealer representative direct you through this process. Never let yourself be lured into getting a car or truck that costs more than you anticipated. All the added pressure isn’t worth it.

The Impact of Credit on Your Loan

Your rate of interest is dependent upon, amongst other things, your credit scores, your location, and the type of loan. To illustrate how important your interest rate is, have a look at this table. Below, we compare the same auto loan at 3.50% and 10.00% APR, respectively:

Good Credit Poor Credit
Size of Loan $11,208 $11,208
APR 3.50% 10.00%
Duration 60 months 60 months
Total Interest $1,026 $3,080

It’s extremely tough to estimate your APR rate without more details. Take a little time to submit your application, and you can see what rates of interest local Dallas lenders and dealers can offer you.

Used Vehicle Financing in Dallas

If you want to limit negative equity, it’s best to opt for a preowned car. Pre-owned vehicles are often paid off more quickly than new ones. This ordinarily means less interest paid, even when you’ve got a more expensive interest rate. Finance companies have got limits in terms of mileage and model year, however.

  • Mileage: no more than 70,000 to 100,000 miles.
  • Year of Production: maximum of 7 years old.

If you want the best of all possible worlds, consider getting a used vehicle that has been inspected and certified by the car maker itself.

Buy Here Pay Here Dealerships in Dallas, Texas

Considering heading to a buy here pay here dealer to get approved? Typically, there are considerably better alternatives. For the most part, dealer finance is sourced elsewhere, as dealerships work with off-site banks and lenders to provide the loans. On the other hand, BHPH dealers provide financing themselves.

Problems include:

  • Outrageous APR Rates
  • Extortionate Down Payments
  • Overpriced Vehicles
  • GPS Tracking Devices

That isn’t all: these car lots seldom report back to the credit agencies, and that means you could make each and every payment when they’re due without making improvements to your credit score.

Dallas Income and Finances

  • Income Per Year: $16,809
  • Monthly Income: $1400
  • Average Car Payment: $154
  • Optimal Monthly Payment: $70 to $140 (5-10% of monthly income)

Consider this table, which shows what price car you can afford based on your FICO score, provided an income of $1,401 on a monthly basis, 60 month term, and a down payment of 20%.

Great Credit Fair Credit Bad Credit
Monthly Income $1,401 $1,401 $1,401
Car Payment $112 $112 $112
Interest Rate 3.50% 7.00% 10.00%
Purchase Price $7,701 $7,075 $6,594
Down Payment $1,540 $1,415 $1,319
Interest Paid $564 $1,065 $1,450
Total with Interest $8,265 $8,140 $8,044

New and Used Car Dealers in Dallas, TX

Looking for a dealer? Here are a few of the leaders in the Dallas area.

Dealer Address Zip Code
Sewell Lexus Of Dallas 6421 Lemmon Ave 75209
Sewell Cadillac 7310 Lemmon Ave 75209
Friendly Chevrolet 2754 N Stemmons Fwy 75207
Park Cities Ford Lincoln 3333 Inwood Rd 75235
Gateway Buick Gmc, Llc 11438 Lyndon B Johnson Fwy 75238
John Eagle Honda 5311 Lemmon Ave 75209
Jaguar Dallas 5300 Lemmon Ave 75209
Metroplex Toyota 39660 Lyndon B Johnson Fwy 75237
Sewell Buick Gmc 7474 Lemmon Ave 75209
Sewell Infiniti 7110 Lemmon Ave 75209