Auto Loans in Round Rock (TX)

Round Rock has been named as one of the best small cities in the country, and we’re happy to serve its burgeoning population with automotive financing services that can’t be beat. Yes, there are all kinds of ways to obtain a car loan in Round Rock, but few companies have optimized credit acceptance like we have, here at Longhorn Auto Finance. We have a diverse network of dealers and lenders, and our clients enjoy some of the highest success rates you’re likely to find. Let us match you with a finance expert who can help you obtain the auto loan necessary for the vehicle you prefer.

Lending Requirements for Round Rock Residents

It is fairly easy to qualify, and we welcome consumers with both good and bad credit. Here is what you will need:

  • 18 years of age, even with a co-signer.
  • Monthly income of $1500, before taxes are withdrawn.
  • No repossessions in the past year, and any bankruptcies discharged.

You will need to demonstrate proof of income, as well as residence, and a down payment may be required. Your finance professional can give you more information.

Bad Credit Car Loans in Round Rock

Many loan companies assess your credit based on a credit score designed for the automotive industry. This score is reliant upon your history with car loans or leases. You don’t want to deal with having a loan application rejected, so it’s important to look for a company in Round Rock that approves bad credit. We can help. We are dedicated to serving consumers all across the credit spectrum, helping them secure the loans they need.

Don’t forget that a car loan, if paid as agreed, can strengthen your credit score and show lenders that you are a creditworthy borrower. As a way to stay away from missed payments, explore options such as scheduled payments. Determining an appropriate payment amount is crucial. For instance, let us suppose you earn $1,871 per month, the average for Round Rock residents.

  • 5% of Income: $94 (Ideal)
  • 8% of Income: $150 (Okay)
  • 10% of Income: $187 (Maximum)

Round Rock Buy Here Pay Here Dealers

People in the BHPH industry hopes you assume that there is no alternative but them, yet this generally isn’t the way it is. Such dealers grant funding on location, unlike conventional dealers which work with banks and finance companies, and they are more focused on your job than your credit. Unfortunately, you can expect excessive annual percentage rates, high down payments, and vehicles that cost too much given the number of miles they have. There is a good reason why these dealers have a bad reputation. Let us put you in touch with a reputable dealer in Round Rock or nearby Austin who will work with you, even if you’ve experienced bankruptcy.

Deciding Between a New and Preowned Vehicle

Used cars and trucks have a few substantial benefits:

  • Lower principal on the loan.
  • Lower down payment requirements.
  • More gradual rate of depreciation.

Used car loans are often financed for shorter periods. This typically means less interest accrued, even when you’ve got a more significant rate of interest. Of course, lenders won’t approve car loans for just any used vehicle. It must meet specific prerequisites: Vehicle must have less than 100,000 miles and be no greater than 7 years old. Have a look at this comparison of new and used vehicle loans in Round Rock, Texas. This assumes a car or truck two years old, having lost 50% of its value, and a borrower with a prime credit score.

New Car Used Car
Price $18,710 $9,355
Down Payment $3,742 $936
Loan Rate 5.00% 7.50%
Length 60 months 48 months
Monthly Payment $282.46 $203.57
Finance Charge $1,980 $1,352
Total Paid $20,690 $10,707

Round Rock Consumer Profile

  • Income Per Year: $22,453
  • Income Per Month: $22,453
  • Recommended Car Payment: $150 (8% of monthly income)

Have you wondered how much car you can finance? Have a look at the numbers below, but bear in mind the rates have been estimated, and the amounts are based on an income of $22,453 per annum, the average in Round Rock. Loan length is 5 years.

Great Credit Fair Credit Subprime Credit
Monthly Income $1,871 $1,871 $1,871
Car Payment $150 $150 $150
APR 3.50% 7.00% 10.00%
Term 5 Years 5 Years 5 Years
Purchase Price $10,285 $9,449 $8,806
Money Down $2,057 $1,890 $1,761
Borrowed Funds $8,228 $7,559 $7,045
Interest Paid $753 $1,422 $1,936
Total Investment $11,038 $10,871 $10,742

Car Loan Rates in Round Rock

Lenders couldn’t stay in business if they approved people who did not repay them. Consequently, the more likely you are to make payments on time, the less expensive your interest rate is bound to be.

Factor Lower Higher
Credit Better Worse
Monthly Income Higher Less
Term of Loan Fewer months More months
Vehicle Mileage Lower Higher
Vehicle Age Newer Older

It is extremely tough to gauge your APR rate without more information. Go ahead and apply online and discover what rates a nearby dealer can get you. Keep in mind, we also serve clients in nearby San Marcos, as well as Austin.