Auto Loans in Flower Mound (TX)

Before we came along, you had no choice but to go to a few different lenders, searching for one who will approve you for financing. At Longhorn Auto Finance, we have made it much easier to secure the auto loan you need. Our market experience is unparalleled, and we have agents approve you for the financing you need. We match you with a lending specialist who can help you get the car loan necessary for the car you prefer.

New and Preowned Car Loans for Flower Mound Consumers

Everyone likes that new car smell, but there are some things to think about when financing a new car, truck, or SUV. Buying a new car is generally less difficult than buying a preowned one, since you don’t have to worry about the vehicle’s condition or mileage. However, don’t forget that lots of the zero down finance deals promoted on TV are with approved credit. Simply put, you’ll need an extremely good credit score to be considered. If you’re undecided, a vehicle finance professional will help you decide if a new our preowned vehicle is the right choice.

Auto Loans for Used Cars in Flower Mound

Used cars are highly recommended for the thrifty consumer. Preowned cars command higher APR rates, but down payments are not but 50% of what they are for brand new cars and trucks of the same price. Worried you’ll face repairs and maintenance problems? This can be alleviated by choosing a vehicle that’s only a couple of years old, or obtaining an extended warranty. To get the best of all possible worlds, consider purchasing a vehicle from your favorite manufacturer’s certified preowned program.

Flower Mound Car Loans for Bad Credit

Banking institutions ordinarily approve people with good to excellent credit. That is, scores of 700 or more. No one likes to deal with being declined for a loan. That’s the reason it is important to contact a lender or dealer in Flower Mound that works with problematic credit. That’s where we can help. At Longhorn Auto Finance, we are known for serving people with credit problems of all kinds, getting them the loans they need.

You want to find a vehicle that fits your credit, not the opposite, so the financing discussion ordinarily comes before anything else.

Car dealerships have been known to charge higher rates than you’d receive directly from the lender. To make sure you get a good rate, make certain you ask the dealer the rate quoted by the lender also referred to as the buy rate. Make sure that your loan payment is not beyond 10% of your income. For a consumer with the Flower Mound average of $5,589 of income each month, this is $559. In reality, 50% of this, $279, is far better.

Flower Mound Buy Here Pay Here Dealers

Buy here pay here car dealers primarily help people who’ve got serious credit problems such as going bankrupt. These types of dealers approve auto loans on the lot, whereas the vast majority of dealers contract this, and they regard your job as your credit. You will discover that used vehicles are the only thing available, and these are not no money down cars. In most cases, the down payment is equivalent to what the dealer had to pay for the vehicle, and interest rates above 20% APR are typical. Worst of all, these dealerships very rarely report back to the credit agencies, so you could make each and every payment month after month without a lift in your FICO score.

Flower Mound Consumer Profile

  • Income Per Annum: $67,068
  • Income Per Month: $67,068
  • Ideal Monthly Payment: $279 to $559 (5-10% of monthly income)

In conclusion, an appropriate car loan involves the following: down payment of 20%, car payment of less than 10% of monthly income, and a repayment term of 60 months or less. Given an income of $5,589 monthly, let’s take a look at how much you could spend based upon your credit.

Prime Credit Decent Credit Bad Credit
Monthly Income $5,589 $5,589 $5,589
Car Payment $447 $447 $447
Loan Rate 3.50% 7.00% 10.00%
Car Price $30,723 $28,226 $26,305
Down Payment $6,145 $5,645 $5,261
Borrowed Funds $24,578 $22,580 $21,044
Total Interest $2,249 $4,247 $5,783
Price with Interest $32,972 $32,472 $32,088