Auto Loans in Frankfort (KY)

Lining up your financing upfront is a strategy that affords you quite a few advantages:

  • Much less time spent on the dealer lot.
  • Potential for a more affordable rate of interest.
  • Superior negotiating power.

Our industry relationships are first rate, and we are experts in matching you to the lender who wants your business most. You will enjoy the convenience of working with a dedicated financing expert to help answer the questions you have and set up your loan.

Frankfort Auto Loan Rates

As you may know, rate of interest plays a huge role when you finance a car, and when lenders decide your rate, there are many different factors. Your credit history is most important. If your credit is strong, you will enjoy a low interest rate. If it isn’t, you will probably not. Here’s how a number of factors will impact your rate.

  • Miles on vehicle: less mileage is better.
  • Term length: quicker is better.
  • Loan to value ratio: lower is better.
  • Length of employment: more time is better.

Loan companies need to know more before they can give you a rate of interest. Fortunately, it’s easy to apply online.

Used Car Financing in Frankfort

Buying preowned doesn’t mean you can’t get a trustworthy vehicle with excellent gas mileage. The finance fees for preowned cars are a bit higher, but other advantages, such as a lower sticker price and more gradual rate of depreciation, more than make up for these higher rates. Even if you’re under water on a preowned vehicle, it typically won’t be for as long. Let’s look at a comparison of new and used vehicle loans in Frankfort, Kentucky. These numbers are based on the following assumptions:

  • New car costs $3,720.
  • 50% depreciation in first 24 months of ownership.
  • Credit score of 690 to 720.
  • Fixed APR.
New Car Used Car
Price $3,720 $1,860
Down Payment $744 $186
APR 5.00% 7.50%
Length 5 years 4 years
Monthly Payment $56.16 $40.48
Finance Fees $394 $269
Total Paid $4,114 $2,129

Auto Loans in Frankfort with Bad Credit

The majority of auto loan companies check your auto industry credit score. This score draws on your history with auto loans or leases, and it isn’t offered to consumers. Clearly, you don’t want to spend your time seeking out a dealer or lender in Frankfort that works with credit scores that aren’t perfect. This is where we can help. At Bluegrass Auto Finance, we serve customers all across the credit spectrum, getting them approved for the loans they need.

Don’t forget that financing a car can raise your credit score and show lending companies that you are a creditable borrower. In fact, after a year or so of timely payments it’s possible you’ll be eligible to refinance at a better rate of interest. Selecting the ideal payment amount is critical. To give an example, let’s pretend you have an income of $372 per month, the average for Frankfort residents.

  • 5% of Income: $19 (Ideal)
  • 8% of Income: $30 (Okay)
  • 10% of Income: $37 (Maximum)

Buy Here Pay Here Car Lots in Frankfort, Kentucky

Buy here pay here car dealers typically finance people who have serious credit problems like filing for bankruptcy. Dealers like these will finance almost anybody, no matter their credit, but there are negatives.

You will discover that used cars and trucks are the only thing you can buy, and these Frankfort dealers may have you pay weekly, at the lot. Repossession is common, and the interest rates have been deemed extortionate by many consumer advocates. There is a good reason that these dealerships have a sullied reputation. We want to place you in the hands of a reputable dealer who will work with you, even if your credit is really bad.

Frankfort Income and Finances

  • Income Per Annum: $4,467
  • Income Per Month: $4,467
  • Typical Car Payment: $41
  • Recommended Monthly Payment: $19 to $37 (5-10% of monthly income)

Check out this chart displaying what car can be afforded with a payment amount of $30, 20% down payment, and 60 month term.

Exceptional Credit Fair Credit Subprime Credit
Monthly Income $372 $372 $372
Monthly Installment $30 $30 $30
APR 3.50% 7.00% 12.00%
Years 5 5 5
Sticker Price $2,045 $1,879 $1,672
Down Payment $409 $376 $334
Borrowed Funds $1,636 $1,503 $1,338
Interest Paid $150 $283 $448
Total Investment $2,195 $2,161 $2,120

Ready to Find Your Loan?

If you’ve got damaged credit, you may need help getting financed. Discuss your needs with a finance manager in Frankfort now.