Auto Loans in McAllen (TX)

Looking to buy a new or used vehicle? If you are like the majority of car-shoppers in McAllen, there’s a high probability you are going to need a car loan. We’ve spent years cultivating a network of lenders and dealers across the United States, and that means we can help applicants of all credit tiers and income brackets. It’s hard to envision a better way to secure your auto loan.

McAllen Auto Loans for New Vehicles

Lots of people would prefer to finance a new car rather than a used one just because there’s little risk of getting a junker. However, there are disadvantages at the same time.

  • They have an average price of over $20,000.
  • They depreciate instantly.
  • They involve bigger down payments to prevent negative equity.

For the most part, new cars and trucks are better for individuals with excellent credit, as the annual percentage rates are cheap enough to overcome negative equity.

Used Car Financing in McAllen

Nowadays, a vehicle with some miles under its belt is a far better investment than a brand new one. Some individuals discount preowned cars for having less affordable loan rates, but keep in mind that they are less expensive at signing and in the long run. For anyone concerned about repairs and maintenance, be sure to get a late model vehicle with good ratings in terms of reliability. Below, we have assembled the following numbers that will help you figure out if it’s best to finance a vehicle that’s new or used. These estimates rely on these assumptions:

  • New price of $18,100.
  • 50% depreciation in the initial 24 months of ownership.
  • Good credit score.
  • Down payment of 20% for new car, 10% for used.
  • Simple Interest.
New Car Used Car
Price $18,100 $9,050
Down Payment $3,620 $905
Interest Rate 5.00% 7.50%
Years 5 4
Monthly Payment $273.26 $196.94
Finance Fees $1,915 $1,308
Total Paid $20,015 $10,358

Financing a Car with Bad Credit in McAllen

Banks and credit unions ordinarily only finance those with good credit scores. That is, scores of 700 or better. While bad credit might make it difficult to finance a car, it isn’t impossible.

When you apply for financing through us, our team works to find you a lender or dealer in your area who is willing to get you in the driver’s seat.

A primary element of your credit score is predicated upon your payment history. That means a car loan, being a large installment loan, can help you in restoring your credit. As a way to avert missed payments, most lending companies enable you to automate your payments.

Budget 8% of your monthly income, and no more, for your auto loan. If you reside in McAllen and, like the average resident, make $1,810 per month, this would be $145.

McAllen Buy Here Pay Here Dealerships

The BHPH industry has expanded in the years after the economic downturn, mainly because so many people’s credit ratings took hits on account of the credit crunch and housing bubble. These dealers will approve virtually anybody, regardless of their credit, but there are negatives.

Sadly, you should expect excessive loan rates, expensive down payments, and well-used vehicles that are overpriced. There’s more: these dealers seldom work with the credit reporting agencies, so you could make every single payment punctually without any lift in your FICO score.

Securing Funds for a Vehicle in McAllen: How Much You Can Finance

The amount you’ll qualify to borrow is based on your income and credit. These amounts incorporate an income of $1,810 on a monthly basis, the average among McAllen consumers.

Credit Rating Multiplier Sum
Excellent Credit 10 $18,100
Fair Credit 9 $16,290
Slow Credit 8 $14,480
Bad Credit 7 $12,670
Terrible Credit 6 $10,860

It’s always good to borrow less than you can. This enables you to save yourself some income for emergencies. Ready to determine how much car is within your budget? Have a look at the table below. The rates of interest are only approximate, and the numbers assume a yearly income of $21,725, the average in McAllen. Loan length is 5 years.

Prime Credit Decent Credit Subprime Credit
Car Payment $145 $145 $145
Rate 3.50% 7.00% 10.00%
Purchase Price $9,950 $9,141 $8,519
Money Down $1,990 $1,828 $1,704
Amount Borrowed $7,960 $7,313 $6,815
Interest Paid $728 $1,375 $1,873
Price with Interest $10,678 $10,516 $10,392

Submit Your Application Online

If your credit score isn’t the best, don’t worry. Our application is free of charge, and you could be driving home in your new car or truck within 24 hours.