Auto Loans in Fort Worth (TX)

Fort Worth may be “where the West begins,” but you need something a little bigger and faster than what the old cow-hands had. You need a new car or truck, and if you’re like the majority of us, you will need an auto loan to cover the full cost of your new vehicle. Fortunately, you have come to the right place. Here at Longhorn Auto Finance, we allow you submit your application via our secure platform. We’ll match you with an auto finance professional who can help you compare rates, terms, and have your finance package lined up before you head to the dealership.

Buying a Car with Bad Credit in Fort Worth

Fort Worth, TXPeople who have no credit problems benefit from highly affordable interest rates and advantageous terms, but a lot of us have struggled with credit problems, many of which were brought on by the financial climate. Many people turn to one of the buy here pay here car dealers in Fort Worth, due to bankruptcy or foreclosure, but odds are you can get a car loan at a more affordable rate from a better company. In all likelihood, we can match you with a dealer or lender in your zip code who wants to work with your credit.

So as to avoid any surprises, we should set your expectations about financing a car with credit problems. Typically, you can expect a rate of interest of 10% APR or more, as well as a down payment of at least 10%. You may not qualify for a longer, 60+ auto loan either. Typically, shorter loans are lower risk, as are newer cars.

Credit Reporting Mistakes

Credit report mistakes have become relatively prevalent. Have you made certain your credit report has no such inaccuracies? Each year, you can check your credit at no charge at AnnualCreditReport.com, in accordance with the FACT (Fair and Accurate Credit Transactions) Act, so that you can make sure you receive the interest rate you deserve.

Used Car Loans in Fort Worth

Pre-owned cars offer certain advantages not offered by brand new ones. Sometimes people disregard preowned autos for having more costly annual percentage rates, but bear in mind that they still don’t cost as much up front and in sum total. For anyone who is anxious about maintenance, be sure to opt for a vehicle that has low miles and good ratings when it comes to reliability. To help you determine which sort of car is right for you, review this helpful table. These numbers are based on the following assumptions:

  • New price of $19,390.
  • Two year old used vehicle.
  • Good credit score.
  • Down payment of 20% for new car, 10% for used.
  • Fixed APR.
New Car Used Car
Price $19,390 $9,695
Down Payment $3,878 $970
APR 5.00% 7.50%
Months 60 48
Monthly Payment $292.73 $210.97
Total Interest $2,052 $1,401
Total Paid $21,442 $11,096

 

Buy Here Pay Here Dealers in Fort Worth, TX

In house financing, otherwise referred to as buy here pay here financing, keeps growing, largely because so many consumers’ credit ratings suffered on account of the down economy. Most of the time, dealer finance is sourced elsewhere, as dealers work with a network of lenders to provide the loans, but buy here pay here dealers engage in direct lending. They act as both lender and dealer.. The fact is, you can expect excessive rates of interest, massive down payments, and cars and trucks that cost too much given their mileage. That isn’t all: these dealers don’t work with the credit reporting agencies, so you could make all of your payments punctually without increasing your FICO score.

Securing the Lowest APR Possible

Rate of interest is hugely important to a lot of car shoppers, as it ought to be. It’s contingent upon a variety of factors. Your credit profile is most important. Obviously, an increased credit score translates into a less expensive interest rate. To illustrate how much bad credit can cost you, have a look at this comparison.

Prime Credit Bad Credit
Loan $15,512 $15,512
Interest Rate 3.50% 10.00%
Months 60 60
Interest Paid $1,419 $4,263

In order to secure the lowest rate, it’s important to pay off any debt you can, offer as large a down payment as you can, and dispute any inaccuracies on your credit report you can. Any, or preferably all of these strategies will strengthen your application, meaning lenders will offer you a lower rate of interest.

If you’re ready for a rate quote, take a little time to apply online, then work with a finance professional to compare personalized rates.

Loan Amounts for Fort Worth Residents

Take a look at the maximum loan amount you’ll be eligible to borrow given different types credit. These numbers assume an income of $1,939 a month, the average among Fort Worth residents.

Credit Income Factor Amount Borrowed
Excellent Credit 10 $19,390
Fair Credit 9 $17,451
Subprime Credit 8 $15,512
Bad Credit 7 $13,573
Very Bad Credit 6 $11,634

However, there’s how much you’re able to finance, and how much is financially responsible.

Auto Loans at $155 per Month

The total amount you can pay for a new car or truck hinges on several different variables. These estimations derive from a monthly payment of $155, which is 8% of the average consumer’s monthly income in Fort Worth, combined with a 20% down payment and 5-year repayment terms. Annual percentage rates are simply estimates.

Great Credit Fair Credit Poor Credit
Monthly Income $1,939 $1,939 $1,939
Payment Amount $155 $155 $155
Interest Rate 3.50% 7.00% 10.00%
Purchase Price $10,659 $9,792 $9,126
Down Payment $2,132 $1,958 $1,825
Interest Paid $780 $1,473 $2,006
Price with Interest $11,439 $11,266 $11,132

Ready to Get Started?

Longhorn Auto Finance is your trusted source when it comes to getting a car financed in Fort Worth. We will place your application with a finance specialist from a dealer or lender near you.