Auto Loans in Grand Prairie (TX)

If you need to finance a car in Grand Prairie, your search is over. We’ve spent years establishing relationships with lenders and dealers across the state of Texas, and we have one of the best approval rates in the industry. It truly is hard to envision a more convenient way to secure your auto loan.

Car Loan Interest Rates in Grand Prairie

Locking down the lowest interest rate possible should be your biggest concern. After all, it will dictate how much your vehicle costs by the time it’s paid off. Here’s how various factors impact your rate of interest.

  • FICO score: higher score leads to lower interest rate.
  • Credit profile: deeper equals lower interest rate.
  • Age of vehicle: newer vehicle equates to lower interest rate.
  • Term of loan: shorter means lower interest rate.
  • Loan to value ratio (LTV): lower equals lower interest rate.
  • Type of loan provider: banks often offer lower rates.

It’s impossible to estimate the rate you’ll be charged without information such as your credit score and income. Take a little time to complete your application, so you can learn what interest rates Grand Prairie dealers and lenders can offer you.

Used Car Financing in Grand Prairie

Pre-owned cars and trucks have a number of advantages not available from brand new ones. The annual percentage rates for preowned vehicles are marginally higher, but other advantages, such as a lower purchase price and flatter rate of depreciation, more than make up for these higher rates. Many loan providers, however, will require that you find your car at a dealer rather than a private seller. Let’s look at a comparison of new and used auto loans in Grand Prairie, Texas. We’re assuming a vehicle that is two years old, and has therefore lost 50% of its value, and a buyer with a prime credit score.

New Car Used Car
Price $22,390 $11,195
Down Payment $4,478 $1,120
Loan Rate 5.00% 7.50%
Length 60 months 48 months
Monthly Payment $338.02 $243.61
Finance Fees $2,369 $1,618
Total Paid $24,759 $12,813

Buying a Car with Bad Credit in Grand Prairie

Most lenders pull a credit score designed for the automotive industry. This score draws on your prior experience with auto loans and leases. Although a bad credit score might make it difficult to finance a new or used car, it’s by no means hopeless. Through us, you can contact an auto financing specialist from a dealer or lender in our network who wants to fund your loan.

Bad Credit Car Dealerships in Grand Prairie

At a bad credit dealership in Grand Prairie or anywhere, your sales rep will want to discuss financing right from the start. Your dealer may need you to verify your income through pay stubs or tax returns, and bring a lease or utility bill with your home address on it. Your dealer salesperson will give you all the details. No matter what your credit score is, you should be able to find a vehicle you can finance. It would be wise of you to opt for a payment that is about 5 to 10% of your monthly income. If you make $2,239 per month, this would be a payment of $112 (5%) to $224 (10%).

Grand Prairie Buy Here Pay Here Dealers

Maybe you’ve thought about BHPH financing on account of bad credit? Ordinarily, there are considerably better options. Most of the time, dealer finance is outsourced, as dealerships go through various lenders to provide the loans, but buy here pay here dealers are both lender and dealer.. You will find that used cars and trucks are the only thing available, and these are not zero down car loans. Quite often, the down payment is set at what the dealer had to pay for the vehicle, and rates above 20% APR are not atypical. Even worse, these dealerships almost never report back to the credit bureaus, so you could make all of your payments punctually without boosting your credit score.

Buying a Car in Grand Prairie: Loan Amounts

The better your credit, the more you can finance, which also goes for your income. These amounts are based of of an income of $2,239 monthly, the average among Grand Prairie consumers.

Credit Income Factor Sum
Good Credit 10 $22,390
Decent Credit 9 $20,151
Temporary Bad Credit 8 $17,912
Bad Credit 7 $15,673
Horrible Credit 6 $13,434

Keep in mind, it’s a mistake to get a loan than you really need, simply because you can. In general, the recommended finance package involves the following: down payment of 20%, car payment of 8% of monthly income, and a repayment term of 60 months or less. Given an income of $2,239 monthly, let’s consider how much car you could buy based on your credit.

Prime Credit Okay Credit Bad Credit
Monthly Income $2,239 $2,239 $2,239
Car Payment $179 $179 $179
Rate 3.50% 7.00% 10.00%
Years 5 5 5
Car Price $12,308 $11,307 $10,538
Money Down $2,462 $2,261 $2,108
Total Interest $901 $1,701 $2,317
Total Paid $13,209 $13,009 $12,855

Speak with a Finance Manager Today

Our company is your trusted source for car loans in Grand Prairie. A finance specialist will take you step-by-step through the approval process, helping you borrow your funds at a reasonable rate of interest.