Auto Loans in Port Arthur (TX)

Many car-shoppers in Port Arthur and across Texas worry about being turned down for a car loan because of their credit. Instead of waiting until you’re in negotiations at the dealership, we allow you to get approved for a car loan ahead of time. You will be led one step at a time through the auto financing process by a lending professional in Port Arthur.

New Car Auto Loans in Port Arthur

Are you looking to finance a brand new car? A lot of personal finance experts counsel against buying a new car. This is because their resale value decreases so quickly, which means you’re more likely to wind up upside down on your loan. That said, a new car is more easily financed with no down payment, due to new car incentives and the like. All things considered, you are best off meeting with an auto finance professional to establish whether a new our used vehicle is right for you.

Auto Loans for Used Cars in Port Arthur

Pre-owned cars offer quite a few advantages over new ones. Lenders impose slightly higher interest rates on previously-owned vehicles, but down payments are much lower than what they are for brand new vehicles that are priced the same. Even if you are under water on a preowned car or truck, it typically won’t be for as long. To help you determine whether a new or used car meets your needs, we have created this helpful chart. We’re assuming a vehicle two years old, having lost one half of its value, and a borrower with a prime credit score.

New Car Used Car
Price $10,700 $5,350
Down Payment $2,140 $535
Interest Rate 5.00% 7.50%
Months 60 48
Monthly Payment $161.54 $116.42
Total Interest $1,132 $773
Total Paid $11,832 $6,123

Port Arthur Car Loans for Bad Credit

Poor credit has a few drawbacks:

  • You will have to pay more in total interest.
  • You have to put more money down.
  • You have to opt for a shorter term loan.

There’s good news, though: there are loan companies and dealerships in Port Arthur that welcome credit-challenged consumers.

The good news is, we are dedicated to serving customers all across the credit spectrum, getting them the loans they need.

An auto loan can without a doubt improve your credit ratings. Just make sure you make each and every payment by the due date.

Just be certain to not ever miss a payment, as it can drop your score drastically.

Set aside 8% of your monthly income, at most, for your auto loan. If you are like the average Port Arthur resident and have an income of $12,844 per year, this is $86.

Buy Here Pay Here Car Lots in Port Arthur, Texas

When you have overwhelming credit problems stemming from issues like bankruptcy or debt settlement, buy here pay here financing might possibly appear to be a smart move. Such dealers approve auto loans on site, while traditional dealers outsource this, and they will typically finance everyone. Disadvantages include excessive rates of interest and down payments, not to mention steeply-priced vehicles with GPS tracking devices to aid in repossession And if that weren’t enough, these dealerships seldom report to the credit agencies, so you could make each and every payment when they’re due without a lift in your FICO score.

Port Arthur Income and Finances

  • Gross annual Income: $12,844
  • Monthly Income: $12,844
  • Typical Car Payment: $118
  • Ideal Monthly Payment: $54 to $107 (5-10% of monthly income)

In the end, an appropriate auto loan features a down payment of 20%, car payment of 8% of monthly income, and a repayment term of 5 years or less. Provided an income of $1,070 monthly, let’s check out what price car you could buy given your credit.

Great Credit Fair Credit Subprime Credit
Monthly Income $1,070 $1,070 $1,070
Monthly Installment $86 $86 $86
Rate 3.50% 7.00% 10.00%
Car Price $5,882 $5,404 $5,036
Down Payment $1,176 $1,081 $1,007
Loan $4,705 $4,323 $4,029
Total Interest $431 $813 $1,107
Total with Interest $6,312 $6,217 $6,143