Auto Loans in Florence (KY)

Cars cost a lot these days, and finding a budget friendly annual percentage rate can be a difficult process. We allow you to submit your application through our system. Generally, we’re able to place borrowers with a willing dealer or lender in as little as a minute.

Gauging Interest Rates in Florence

Securing the best rate of interest possible should be your main concern. After all, it will determine how much your vehicle ends up costing over the life of the loan. To illustrate how important your rate of interest is, take a look at this scenario, given a 60-month, $15,816 loan:

  • 3.50% APR: $1,447 in interest.
  • 12.00% APR: $5,293 in interest.

It is very hard to predict your APR rate without more information. Take a moment to submit your application, so you can find out what rates local Florence lenders and dealers are willing to offer you.

Used Car Financing in Florence

Used cars and trucks give you several significant merits:

  • They cost less to purchase.
  • The down payments are not as high.
  • They retain their value better.

The shorter repayment terms typical of used vehicle lending typically result in less interest paid, even if you’ve got a higher rate of interest. A great many lending companies, however, will require that you find your car at a dealer as opposed to a private party. To get the best of all possible worlds, consider a used car that has passed a manufacturer inspection, for instance a certified preowned vehicle.

Bad Credit Car Loans in Florence

Banks typically fund loans only for people with good to excellent credit. That is, scores of 700 at minimum. There’s good news, however: there are lending companies and dealerships in Florence that welcome credit-challenged consumers.

We have the solution. At Bluegrass Auto Finance, we serve consumers who have credit problems of all kinds, getting them the loans they need.

A major element of your credit score relies on your payment history, and making payments on your new car can help you rebuild your credit. Believe it or not, many people wind up refinancing at a reduced rate of interest after a couple of years of payments under their belt. You shouldn’t overburden your finances with an expensive car payment. Typically 5-8% of your monthly income is reasonable, or $99 to $158 if you earn $1,977, the average in Florence.

Buy Here Pay Here Financing in Florence, Kentucky

When you’ve got serious credit problems on account of issues like bankruptcy or repossession, a buy here pay here dealer might possibly appear to be a realistic approach. A lot of dealer finance is indirect, in that dealerships work with off-site banks and lenders to provide the loans, but BHPH dealers don’t. They are the actual source of the loans.

Unfortunately, you will be faced with excessive rates of interest, high down payments, and vehicles that are too expensive for the number of miles they have. And if that weren’t enough of an issue, these dealers don’t report back to the credit bureaus, so you could make all of your payments as agreed without increasing your credit score.

Florence Consumer Profile

  • Gross annual Income: $23,720
  • Monthly Income: $23,720
  • Average Car Payment: $217
  • Ideal Monthly Payment: $99 to $198 (5-10% of monthly income)

Below we have a table showing what car can be afforded with a payment per month of $158, 20% down payment, and 60 month term.

Good Credit Fair Credit Bad Credit
Monthly Income $1,977 $1,977 $1,977
Payment Amount $158 $158 $158
Rate 3.50% 7.00% 12.00%
Months 60 60 60
Car Price $10,868 $9,984 $8,888
Money Down $2,174 $1,997 $1,778
Borrowed Funds $8,694 $7,987 $7,110
Total Interest $796 $1,502 $2,380
Total with Interest $11,663 $11,486 $11,267