Having your automobile loan lined up in advance is a very good strategy, as the benefits are substantial:
- A shorter time spent in the finance office.
- Chance for a reduced rate of interest.
- Increased negotiating leverage.
We have a diverse network of lenders and dealers, and we have finance professionals ready to finance your purchase. We connect you to a finance professional who will work tirelessly to get you financed.
What Interest Rate Will You Be Given in McKinney?
Curious as to what your interest rate will be? Have you checked your credit score? This is the most important variable. The effect of a higher interest rate is nothing short of incredible. For a $28,264 auto loan, you would pay $2,586 in interest at a rate of 3.50%, and $7,768 at a rate of 10.00%. If you want a definitive rate quote, you will have to consult an auto finance professional.
Financing a Used Vehicle in McKinney
In many cases, a pre-owned car or truck is a far better deal than a brand new one. Lenders charge slightly higher loan rates on used vehicles, but down payments are not nearly as high as what they are for brand new vehicles that cost the same. If you are under water on a preowned car, it will typically be for a shorter period of time. Here, we’ve compared new and used vehicle loans in McKinney, Texas. These estimates rely on the following assumptions:
- Two year old used vehicle.
- Credit score of 690 to 720.
- 20% down payment for new car, 10% for used.
- Simple Interest.
|New Car||Used Car|
|Term||60 months||48 months|
McKinney Car Loans for People with Bad Credit
Less-than-perfect credit has a few drawbacks:
- You will have to pay more in interest.
- You have to put more money down.
- You have to finance for shorter terms.
You don’t want to deal with rejected credit, and therefore you should locate a lender or dealer in McKinney that works with subprime credit.
We can help. At Longhorn Auto Finance, we specialize in serving customers who have credit problems of all kinds, getting them the loans they need.
Does Your Credit Report Contain Mistakes?
In order to secure the most affordable interest rate, don’t forget to examine your credit report for inaccuracies.
One time every 12 months, you can check your credit free of charge at Annual Credit Report, a site created by the leading credit bureaus, and make sure you are offered the interest rate that’s in line with your credit.
McKinney Buy Here Pay Here Dealerships
People in the BHPH industry wants you to believe that they’re your only option. However, this usually isn’t the way it is. These dealers approve funding on the lot, whereas conventional dealers outsource this, and they regard your income as a form of credit.
Unfortunately, you should be prepared for excessive rates of interest, expensive down payments, and vehicles that are too expensive for their condition. Is raising your credit important to you? Then you are better off applying through us, as BHPH dealers won’t help you rebuild your credit.
Loan Amounts for McKinney Consumers
The stronger your credit, the more you can borrow. The same applies to your income. The following numbers use an income of $3,533 a month, the average in McKinney.
|Very Bad Credit||6||$21,198|
The amount you can borrow, and the amount you ought to, are two different things.
Financing a Car with $283 Monthly Payment
Check out this table demonstrating what car you can afford with a payment amount of $283, 20% down payment, and 60 month term.
|Great Credit||Fair Credit||Subprime Credit|
|Term||5 Years||5 Years||5 Years|
|Total with Interest||$20,843||$20,527||$20,284|
Your Auto Loan is Waiting!
If your credit score isn’t ideal, don’t worry. Submit your application, and we’ll get you approved. It’s quick, easy, and there’s no fee.