Auto Loans in Lufkin (TX)

In the old days, you had to banks and lenders all over town, applying for loans to check rates. At Longhorn Auto Finance, we have made it much easier to secure the auto loan you need. For years, we’ve been cultivating a network of dealers and lenders across the state of Texas, and we have some of the highest approval rates in the market. It truly is tough to envision a better way to secure the financing required for your new car.

Gauging Interest Rates in Lufkin

The greatest danger for lending institutions are individuals who fall past due on their loans. As a result, the the higher your FICO score, the cheaper your finance rate will be. Check out how various factors influence your annual percentage rate.

  • Credit score: higher score results in lower interest rate.
  • Credit profile: deeper equals lower interest rate.
  • Vehicle age: newer vehicle results in lower interest rate.
  • Term length: shorter equates to lower interest rate.
  • Loan to value ratio (LTV): lower means lower interest rate.
  • Loan company: banks typically supply lower interest.

Loan companies need your application before they can offer you an interest rate, so be sure you apply online.

Financing a Used Vehicle in Lufkin

You don’t need to buy new to have a well built, fuel efficient vehicle. The annual percentage rates for preowned cars and trucks are a little more expensive, but other advantages, such as a lower purchase price and less extreme rate of depreciation, more than compensate for these heightened rates. For anyone anxious about repairs and maintenance, make sure to opt for 1-2 year old vehicle with great dependability. Here, we’ve compared new and used vehicle loans in Lufkin, Texas. This is assuming a two year old vehicle that has lost 50% of its value, and a buyer with a credit score of 690 to 720.

New Car Used Car
Price $11,520 $5,760
Down Payment $2,304 $576
Interest Rate 5.00% 7.50%
Length 5 years 4 years
Monthly Payment $173.92 $125.34
Finance Charge $1,219 $832
Total Paid $12,739 $6,592

Considerations for People in Lufkin with Bad Credit

Have you got poor credit resulting from outstanding bills, unemployment, foreclosure, or bankruptcy? Of course, you don’t want to waste time looking for a dealer or finance company in Lufkin that will work with lower credit scores.

Fortunately, we are experts in serving clients with credit problems of all kinds, getting them approved for the loans they need.

A primary component of your credit score is calculated from your history of making–or missing–payments, and making payments on your new car loan can help you increase your credit. Make sure not to miss a payment, as it can bring down your score considerably. Settling on the ideal payment amount is a must. For example, let’s say you make $1,152 per month, the average for Lufkin residents.

  • 5% of Income: $58 (Ideal)
  • 8% of Income: $92 (Okay)
  • 10% of Income: $115 (Maximum)

Lufkin Buy Here Pay Here Dealers

Perhaps you have thought about heading to a buy here pay here dealer for approval? Typically, there are considerably better options. Normally, dealer finance is indirect, as dealers go through various lenders to provide the loans. In contrast, BHPH dealers are the actual source of the loans. Disadvantages include outrageous lending rates, money down, and vehicle prices As if that weren’t a problem, these dealers almost never report to the credit reporting agencies, and that means you could make each and every payment as agreed without any boost to your FICO score.

Buying a Car in Lufkin: Loan Amounts

The amount you’ll be eligible finance will be based off of your income bracket and credit tier. We’ve included a table that depicts potential pre-approvals for someone with an income of $1,152 a month, the average in Lufkin.

Credit Rating Multiplier Loan
Great Credit 10 $11,520
Decent Credit 9 $10,368
Temporary Bad Credit 8 $9,216
Bad Credit 7 $8,064
Very Bad Credit 6 $6,912

Don’t get a loan than you need, simply because you are able to. In summary, the ideal auto loan incorporates a down payment of 20%, car payment of less than 10% of monthly income, and term length of 60 months or less. Provided an income of $1,152 each month, let’s look at what price car you could buy given your credit.

Exceptional Credit Decent Credit Bad Credit
Payment $92 $92 $92
Interest Rate 3.50% 7.00% 10.00%
Vehicle Price $6,333 $5,818 $5,422
Down Payment $1,267 $1,164 $1,084
Interest Paid $464 $875 $1,192
Total Investment $6,796 $6,693 $6,614

Submit Your Application Online!

If you have bad credit, don’t worry. Speak with an auto finance expert in your area now.