Auto Loans in Wichita Falls (TX)

Ever since the recession, financing a car has become more difficult. Lenders are less willing to approve people with anything but pristine credit, and larger down payments are being required. Wichita Falls, unfortunately, hasn’t been immune from these trends. Fortunately, the team at Longhorn Auto Finance is here to help. We’ve spent years establishing a network of dealers and lenders across Texas, and we are experts in placing your application with the lender that wants your business most. Let us match you with a finance expert who can help you line up the auto loan you need before you ever step foot on the dealer lot.

Bad Credit Car Loans in Wichita Falls

Wichita Falls TXIf you have top-notch credit, in all probability you’ll benefit from very low rates of interest and great terms, but many folks don’t have this luxury. With good reason, you don’t want to waste a lot of time looking for a bank or finance company in Wichita Falls that will work with credit scores that aren’t perfect. When you apply for financing through us, our team works to find you a dealer or lender in Wichita Falls who wants to approve your credit.

Searching for a car that you can finance at a reasonable rate is vitally important, particularly if you have low credit scores. You probably won’t be capable of financing all the cars and trucks in the showroom. Your dealer may ask you to furnish a few particulars such as proof of income, residence, and insurance. No matter your credit, there has to be a vehicle to suit your budget. It would be smart of you to go with a payment that is approximately 5 to 10% of your monthly income. If you earn $2,549 per month, this is a payment of $127 (5%) to $255 (10%).

Buy Here Pay Here Auto Loans in Wichita Falls, TX

Buy here pay here car dealers ordinarily work with people who have serious credit problems like:

auto loan wichita falls tx

  • Filing bankruptcy
  • Home Foreclosure
  • Auto Repossession
  • Debt Settlement
  • IRS Liens
  • Collections
  • Legal Judgments
  • Charge-offs

These dealers provide auto loans on site, whereas most dealers work with banks and finance companies, and they will typically finance anyone. Downsides include:

  • Inflated Finance Fees
  • Massive Down Payments
  • Steeply-Priced Cars and Trucks
  • Aggressive Repossession Tactics

If strengthening your credit score is important to you, and why wouldn’t it be, you should contact a vehicle finance professional through us, as BHPH car lots won’t help you restore your credit.

Used Car Auto Loans in Wichita Falls

Preowned autos offer a number of key advantages:

  • More affordable out the door cost relative to the same new car or truck.
  • Lower down payment requirements.
  • Flatter rate of depreciation.

Considering that they have already undergone that first drop in value, preowned vehicles necessitate lower down payments, ordinarily 10% of the vehicle’s purchase price. Maintenance issues can be alleviated by looking for a vehicle that is still under warranty or buying an extended service contract. It is advisable to pay an automotive technician to check the vehicle before buying it, or consider getting a used vehicle that has been inspected and certified by the automaker itself.

Purchasing a Car in Wichita Falls: Loan Amounts

As a rule, lending companies evaluate your income and credit score to calculate the maximum amount they’re willing to lend you. We’ve included a chart depicting loan pre-approvals for someone with an income of $2,549 per month, the average in Wichita Falls.

Credit Income Factor Amount
Great Credit 10 $25,490
Average Credit 9 $22,941
Temporary Bad Credit 8 $20,392
Poor Credit 7 $17,843
Terrible Credit 6 $15,294

But don’t forget: there is the amount you’re able to borrow, and the amount you should. The total amount you can pay for a car is based on several factors. These estimates are based upon a monthly payment of $204, which is 8% of the average consumer’s monthly income in Wichita Falls, together with a 20% down payment and 60 month loan. Rates of interest are estimated.

Good Credit Okay Credit Poor Credit
Monthly Payment $204 $204 $204
Rate 3.50% 7.00% 10.00%
Vehicle Price $14,012 $12,873 $11,997
Down Payment $2,802 $2,575 $2,399
Borrowed Funds $11,209 $10,298 $9,598
Total Interest $1,026 $1,937 $2,638
Total Investment $15,038 $14,810 $14,635