Auto Loans in Katy (TX)

Looking for a new or preowned vehicle in Katy? Then there is a high probability you need an auto loan to get yourself in the driver’s seat of the car you want. Fortunately, our industry partnerships here at Longhorn Auto Finance are unparalleled, and we specialize in matching you to the lender that is most likely to fit your needs. It really is hard to find a better way to obtain an auto loan.

New Auto Loans in Katy

Katy TX auto loanThere are advantages to purchasing a brand new car, foremost of which are their lower rates of interest. Still, there are downsides as well.

  • Immediate drop in resale value.
  • Greater original investment.
  • Bigger down payments necessary.
  • Increased chance of being upside down.

Of course, new cars make for hassle-free driving, and that is worth a lot. Ultimately, it’s your choice.

Auto Loans for Preowned Cars in Katy

Preowned autos are cheaper, that’s obvious, which results in they cost less to finance and insure. Lenders impose slightly higher rates of interest on previously-owned cars, but down payments are not but 50% of what they are for brand new vehicles that are priced the same. Maintenance issues can be relieved by buying a late model vehicle or obtaining a new service contract. To help you make a decision as to which kind of car would fit you best, we have published this helpful chart. We are assuming a two year old vehicle that has lost one half of its value, and a buyer with a credit score of 690 to 720.

New Car Used Car
Price $39,580 $19,790
Down Payment $7,916 $1,979
APR 5.00% 7.50%
Duration 5 years 4 years
Monthly Payment $597.54 $430.65
Finance Charge $4,188 $2,860
Total Paid $43,768 $22,650

Financing a Car in Katy with Bad Credit

The vast majority of finance companies pull a credit score tailored for the automobile industry. This score is based on your prior experience with auto loans or leases. While a bad credit score can make it difficult to purchase a new vehicle, you’re not devoid of options. We have the solution. At Longhorn Auto Finance, we are known for serving clients with credit problems of all kinds, helping them secure the loans they need.

Financing a car can, of course, help you rebuild your credit, by re-establishing a strong payment history. To do so, though, you will need to make each and every payment on time–this is key. For this reason, you should be sure of the following:

  1. Opt for an affordable monthly payment. Don’t stretch your budget to afford a more expensive car.
  2. Set up an automatic payment with your lender. Most banks allow you to schedule monthly payments like this.

They estimate that 1 in 5 individuals has errors on their credit report, as reported by one of the major credit reporting agencies. Luckily, it is easier than you think to challenge any errors, and doing so could result in:

  • Reduced rates
  • Lower down payments
  • Extended financing

Ready to get rolling? You can apply in just three minutes, and we’re able to place 90% of qualified candidates with a lender or dealer willing to fund their loan.

Katy Buy Here Pay Here Dealerships

Have you considered BHPH financing on account of bad credit? Usually, there are more attractive alternatives. These types of car lots offer credit lines in-house, whereas the vast majority of dealerships outsource this, and they are more concerned with your job than your credit.

You will discover that higher-mileage autos are the only models on the lot, and these are not no money down car loans. Usually, the down payment matches what the dealer had to pay for the vehicle, and rates that cozy right up to the state’s maximum legal limit are typical. If elevating your credit score is important to you, and it ought to be, you are better off applying through us, as buy here pay here car lots can’t help you restore your credit.

Securing Funds for a Vehicle in Katy: How Much Can You Borrow?

The amount you can finance will be determined by your income and credit. Take a look at these amounts for the average Katy resident who has a monthly income of $3,958.

Credit Multiplier Loan
Excellent Credit 10 $39,580
Fair Credit 9 $35,622
Slow Credit 8 $31,664
Poor Credit 7 $27,706
Very Bad Credit 6 $23,748

It’s always good to finance less than you can, as a way to keep space in your budget for unexpected expenses. The amount you ought to spend on your new car hinges on a multitude of variables. The estimates in the table below are based on a monthly payment of $317, which is 8% of the average consumer’s monthly income in Katy, along with a 20% down payment and 60 month loan. Lending rates are approximate.

Good Credit Fair Credit Bad Credit
Payment Amount $317 $317 $317
APR 3.50% 7.00% 10.00%
Term 60 Months 60 Months 60 Months
Vehicle Price $21,757 $19,989 $18,628
Down Payment $4,351 $3,998 $3,726
Loan Amount $17,406 $15,991 $14,903
Interest Paid $1,593 $3,007 $4,096
Total Investment $23,350 $22,996 $22,724

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No matter your credit, we’d love to help you obtain the funds you need. We will connect you with a dealer or lender that’s local to Katy.