Auto Loans in Harker Heights (TX)

More and more consumers in Harker Heights are setting up their financing before going to the dealership, as it makes purchasing a car a much easier process. For years, we’ve been building a network of dealers and lenders across Texas, and we have one of the best success rates in the industry. You will enjoy the convenience of working with a committed lending consultant who can answer the questions you have and line up your loan.

Car Loan Rates in Harker Heights

Wondering what your rate of interest will be? Do you know your credit score? This is the biggest factor. As one example of high versus low interest, take a look at the difference in total interest when financing a car:

  • $27,408 financed at 3.50% APR for 60 months: $2,508 paid in total interest.
  • $27,408 financed at 10.00% APR for 60 months: $7,532 paid in total interest.

To obtain a definitive estimate of your interest rate, you need to contact an auto finance professional.

Used Car Auto Loans in Harker Heights

Preowned cars and trucks give you quite a few important benefits:

  • They are less expensive to buy.
  • The down payments are about half as much.
  • They don’t depreciate as quickly.

The annual percentage rates for preowned cars and trucks are a little higher, but other advantages, such as a lower sticker price and less extreme rate of depreciation, more than make up for these increased rates. Even if you’re in over your head on a preowned car or truck, it will typically be for a shorter time period. In order to help you make a decision as to which sort of car you ought to buy, check out the following chart. This is assuming a two year old vehicle that has lost one half of its value, and a borrower with a credit score of 690 to 720.

New Car Used Car
Price $34,260 $17,130
Down Payment $6,852 $1,713
Loan Rate 5.00% 7.50%
Term 5 years 4 years
Monthly Payment $517.22 $372.77
Finance Fees $3,625 $2,476
Total Paid $37,885 $19,606

Harker Heights Bad Credit Car Loans

There are some drawbacks to financing a car with bad credit:

  • You will be forced to pay more in interest.
  • You have to have a larger down payment.
  • You have to opt for a shorter term loan.

Here’s the good news: there are lending companies and dealers in Harker Heights that accept credit-challenged consumers.

When you apply for financing through us, our team works to match you with a dealer or lender in your zip code who wants to approve you for financing.

A large component of your credit score is based on your record of payments, and making payments on your new car loan can help you restore your credit. Be sure never to miss a payment, as it can decrease your score dramatically. Determining an appropriate payment amount is essential. By way of example, let’s pretend you have an income of $3,426 per month, the average for Harker Heights residents.

  • Low Payment: $171 (5%)
  • Intermediate Payment: $274 (8%)
  • Max Payment: $343 (10%)

Buy Here Pay Here Car Lots in Harker Heights, Texas

Buy here pay here dealerships hopes you think that nobody but them will approve you. However, this is very rarely the case. These types of car lots offer funding on site, as opposed to traditional dealers which utilize off site lenders, and they are more focused on your income than your credit.

Drawbacks include exorbitant lending rates that border on Texas’s usury laws, as well as high rates of repossession There is a good reason that these dealers don’t have a good reputation. We can place you with a reputable dealer who can get you in the driver’s seat of an excellent car or truck, even if you’ve experienced bankruptcy.

Securing Funds for a Car in Harker Heights: Loan Amounts

Have a look at just how much you’ll be qualified to borrow given your credit. These numbers assume an income of $3,426 on a monthly basis, the average among Harker Heights consumers.

Credit Multiplier Loan
Great Credit 10 $34,260
Fair Credit 9 $30,834
Temporary Bad Credit 8 $27,408
Poor Credit 7 $23,982
Terrible Credit 6 $20,556

It’s wise to finance less than you can. In this way, you can keep room in your budget for other things.

Auto Loans with $274 Monthly Payment

Here we have a table demonstrating what car can be afforded with a monthly installment of $274, 20% down payment, and 60 month term.

Exceptional Credit Fair Credit Poor Credit
Monthly Income $3,426 $3,426 $3,426
Payment Amount $274 $274 $274
APR 3.50% 7.00% 10.00%
Term Length 60 Months 60 Months 60 Months
Sticker Price $18,833 $17,302 $16,125
Money Down $3,767 $3,460 $3,225
Note Size $15,066 $13,842 $12,900
Interest Paid $1,379 $2,603 $3,545
Total Paid $20,211 $19,905 $19,670