Auto Loans in Humble (TX)

If you are interested in a new car, there is a high probability you need an auto loan. We give you the ability to submit your application through our system. We match you with a finance consultant who can help you arrange the auto loan you need for the vehicle you want.

Financing a New Vehicle in Humble

Most individuals elect to purchase a new car because of fewer maintenance concerns and, in some circumstances, lower monthly payments.

However, if you finance a new car, you should plan to keep driving it until the loan is fully paid back, so you don’t end up owing the bank money after the vehicle has been traded in or sold.

Obviously, it’s considerably more fun to drive away in a new car. In the end, it’s your choice.

Auto Loans for Preowned Cars in Humble

Preowned autos offer quite a few key advantages:

  • More affordable out the door cost when compared with a similar new vehicle.
  • Lower down payment requirements.
  • Reduced risk of negative equity.

Pre-owned vehicles are often financed for shorter periods. This typically means less interest paid, even if you’ve got a higher apr rate. Keep in mind, lenders won’t approve financing for just any used car or truck. It must meet certain prerequisites:

  • Mileage: maximum of 70,000 to 100,000 miles.
  • Year of Production: maximum of 7 years old.

In the following table, we’ve compared new and used vehicle loans in Humble, Texas. This assumes 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 $40,070 $20,035
Down Payment $8,014 $2,004
Interest Rate 5.00% 7.50%
Years 5 4
Monthly Payment $604.94 $435.98
Total Interest $4,240 $2,896
Total Paid $44,310 $22,931

Humble Bad Credit Car Loans

Bad credit has drawbacks, which often include:

  • Higher loan rates.
  • Larger down payments.
  • Shortened lending terms.

Even though a bad credit score can make it tricky to finance the car you’d like, it’s not out of the question. We have the solution. At Longhorn Auto Finance, we are experts in serving consumers who have credit problems of all kinds, getting them approved for the loans they need.

An auto loan can without a doubt contribute to an increased credit ratings. Of course, it’s essential to make each payment by the due date. In order to steer clear of missed payments, a lot of finance companies make it easy to automate your payments.

Set aside 8% of your monthly income, at most, for your car loan. If you are like the average Humble resident and make $48,078 per year, this would be $321.

Buy Here Pay Here Auto Loans in Humble, TX

The BHPH industry hopes you assume that no one but them will finance you. However, this is rarely the case. Most dealer financing is sourced elsewhere, as dealerships work with off-site banks and lenders to provide the loans, but buy here pay here dealers are the actual loan originator.

More often than not, used autos are the only ones for sale, and you may be required to have a GPS tracking system placed in your vehicle. Repossession is a common occurrence, and the interest rates are very high. There’s a good reason why these dealers have a bad reputation. We can connect you with subprime finance specialist who can get you in the car or truck you need, even if you have bad credit.

Buying a Vehicle in Humble: How Much Can You Finance?

The amount you can finance is based on your income and credit. To illustrate, take a look at these numbers based on an income of $4,007 per month, which is the average in Humble.

Credit Score Multiplier Sum
Great Credit 10 $40,070
Average Credit 9 $36,063
Temporary Bad Credit 8 $32,056
Bad Credit 7 $28,049
Very Bad Credit 6 $24,042

The truth is, it’s safer to purchase a less costly car or truck than you really can. To sum it up, an ideal car loan involves the following: down payment of 20%, car payment of less than 10% of monthly income, and a repayment term of 5 years or less. With an income of $4,007 a month, let’s find out the amount you could spend based upon your credit.

Good Credit Fair Credit Subprime Credit
Monthly Income $4,007 $4,007 $4,007
Monthly Installment $321 $321 $321
APR 3.50% 7.00% 10.00%
Months 60 60 60
Sticker Price $22,026 $20,236 $18,859
Down Payment $4,405 $4,047 $3,772
Interest Paid $1,612 $3,045 $4,146
Price with Interest $23,639 $23,281 $23,005

Ready to Get Rolling?

Regardless of your credit, we’re ready to help you get the funds you need. Get in touch with a lending manager in your area today.