Auto Loans in Henderson (KY)

When it comes to getting an auto loan in Henderson, few if any firms have refined the process like ours has. Our experience in the field is unparalleled, which means we can help applicants get pre-approved for financing, even if their credit isn’t perfect. Experience the convenience of having a committed financing expert to answer your questions and set up your loan.

Henderson Auto Loan Rates

The interest rate on your vehicle depends on all sorts of factors, a few of which include your credit score, your lender, and the type of vehicle (new or used). To illustrate good versus bad credit, check out the difference between 3.50% and 12.00% APR:

  • $11,600 financed at 3.50% APR for 60 months: $1,061 paid in total interest.
  • $11,600 financed at 12.00% APR for 60 months: $3,882 paid in total interest.

Lending institutions need to know more before they can quote you an interest rate. Fortunately, it’s easy to apply online.

Auto Loans for Used Cars in Henderson

Believe it or not, a pre-owned car winds up being a significantly better deal than a new one. The annual percentage rates for preowned autos are somewhat more expensive, but other advantages, such as a lower price and less extreme rate of depreciation, more than compensate for these heightened rates. Maintenance concerns can be assuaged by looking for a vehicle that’s just one to two years old, or buying an extended service contract. Below, you will find some numbers that may help you decide if you should purchase a vehicle that’s new or used. These numbers are based on the following assumptions:

  • Two year old used vehicle.
  • Credit score of 690 to 720.
  • Simple Interest.
New Car Used Car
Price $14,500 $7,250
Down Payment $2,900 $725
APR 5.00% 7.50%
Years 5 4
Monthly Payment $218.91 $157.77
Interest $1,534 $1,048
Total Paid $16,034 $8,298

Bad Credit Henderson Car Loans

For those who have poor credit, a bank-financed loan typically isn’t an option. Many people settle for financing through one of the buy here pay here car lots in Henderson, because of bad credit, but it is best to avoid these car dealers.

The good news is, we serve clients at every point on the credit spectrum, getting them the loans they need.

A significant element of your credit score is influenced by your history of making–or missing–payments. That means an auto loan, being a big loan, can help you restore your credit. Indeed, many people end up refinancing at a better interest rate after a year or two of timely payments. Settling on the ideal payment amount is a must. As one example, suppose you earn $1,450 per month, the average for Henderson residents.

  • 5% of Income: $73 (Ideal)
  • 8% of Income: $116 (Okay)
  • 10% of Income: $145 (Maximum)

Buy Here Pay Here Dealers in Henderson, Kentucky

For people with been through bankruptcy or debt settlement, buy here pay here financing might seem like a realistic approach. Nearly all dealer financing is outsourced, in that dealers go through off-site banks and lenders to provide the loans. On the other hand, buy here pay here dealers provide funding independently. Sadly, you will be faced with exorbitant rates of interest, massive down payments, and older vehicles that are overpriced. If bettering your credit score is important to you, and why wouldn’t it be, you are better off applying through us, seeing as buy here pay here car lots will not help you rebuild your credit.

Loan Pre-approvals for Henderson Consumers

The amount you can take out for a car is based on your income and credit. We’ve included a chart depicting loan amounts for individuals with an income of $1,450 per month, the average in Henderson.

Credit Rating Income Factor Amount Borrowed
Good Credit 10 $14,500
Decent Credit 9 $13,050
Slow Credit 8 $11,600
Poor Credit 7 $10,150
Horrible Credit 6 $8,700

But don’t forget: there is the amount it’s possible for you to borrow, and the amount is smart. To sum up, the optimum car loan involves the following: down payment of 20%, car payment of 5-8% of monthly income, and a repayment term of 5 years or less. With an income of $1,450 a month, let’s consider how much car you could buy given your credit.

Excellent Credit Decent Credit Bad Credit
Monthly Installment $116 $116 $116
Rate 3.50% 7.00% 12.00%
Purchase Price $7,971 $7,323 $6,518
Down Payment $1,594 $1,465 $1,304
Total Interest $583 $1,102 $1,745
Total with Interest $8,554 $8,425 $8,264

Ready to Get Rolling?

No matter your credit, we work hard to help you secure the funding you need. Submit your application, and we’ll get you approved. It’s fast, safe, and secure.