Auto Loans in Louisville (KY)

Louisville-KYA few years back, you needed to visit one lender after another, applying for loans to check rates. Here at Bluegrass Auto Finance, we have brought this process online. Our familiarity with the auto finance market is unmatched, and we have lenders and dealers approve you for the financing you need. Enjoy the convenience of working with a dedicated lending specialist who can answer your questions and arrange your loan.

Interest Rates in Louisville

The most significant danger for lenders are individuals who default on their loans. As a result, the stronger your credit, the lower your rate of interest is going to be. Let’s imagine you finance $12,496, and because of your excellent credit, the bank gives you a rate of 3.50% APR. You would, in the time it took you to pay off your vehicle, pay $1,143 in interest. On the flip side, if you have unfavorable credit ratings and a rate of 12.00%, you would pay $4,182 in interest.

A lender can’t determine what your interest rate will be until they have more information, such as your income, existing debt, and credit profile. There are simply too many factors to consider to make very accurate “ballpark” estimations. To receive a definitive rate quote, you should submit your application and speak with a finance professional.

Auto Loans for Used Cars in Louisville

Used autos have got a few fundamental advantages:

  • They cost less to purchase.
  • They are cheaper to insure.
  • They retain value better.

Considering that they have already experienced that initial depreciation, used vehicles necessitate less costly down payments, generally half of what you’d be required to pay for a similarly priced new vehicle. If you are concerned about maintenance, be sure to go with 1-2 year old vehicle with excellent ratings when it comes to dependability. It is smart to hire a reputable mechanic to check the vehicle before buying it, or consider a certified used car or truck.

Louisville Bad Credit Car Loans

If you have great credit, you will likely have the benefit of minimal rates of interest and great terms. However, a lot of people have faced credit problems, many of which were brought on by the economic crisis. With good reason, you don’t want to spend your weekends looking for a bank or dealer in Louisville that will work with bad credit borrowers.

Through us, you can contact an auto lending professional from a dealer or lender within driving distance who wants to get you in the driver’s seat.

Dealerships in Louisville That Finance Bad Credit

If you have a good credit score, you spend the majority of your time at the dealership viewing vehicles. However, with bad credit, you will spend more time going over your interest rate, lending terms, and down payment. To fulfill the approval criteria, you will usually have to furnish some documentation such as proof of income, residence, and insurance. Regardless of your credit, we can help you find a vehicle you can finance. It’s recommended that the payments are around 5 to 10% of your monthly income. If you earn $1,562 per month, this is a payment of $78 (5%) to $156 (10%).

Buy Here Pay Here Financing in Louisville, KY

In house financing, also known as buy here pay here financing, has expanded in the years following the downturn, mainly because so many people’s credit scores took hits on account of the economic crisis. They might not pull your credit, which means bad credit probably won’t be an obstacle, but you will end up paying more than you’d like for this.

You will notice that preowned vehicles are the only ones on the lot, and dealers may expect you to make payments weekly, in person. Rates of repossession are quite high, as are the interest rates. If bettering your credit score is important to you, and why wouldn’t it be, you are better off applying through us, seeing as BHPH dealerships won’t help you in re-establishing your credit.

Purchasing a Vehicle in Louisville: Loan Amounts

The stronger your credit, the bigger amount you can borrow. The same goes for your income. The following figures use an income of $1,562 per month, the average for people in Louisville.

Credit History Multiplier Loan Amount
Great Credit 10 $15,620
Fair Credit 9 $14,058
Temporary Bad Credit 8 $12,496
Poor Credit 7 $10,934
Terrible Credit 6 $9,372

How much you can borrow, and how much you should, are two separate things. Have a look at this table, which shows what price car is within your budget given your credit rating, with an income of $1,562 per month, 5 year term, and a down payment of 20%.

Good Credit Decent Credit Poor Credit
Monthly Payment $125 $125 $125
APR 3.50% 7.00% 12.00%
Years 5 5 5
Purchase Price $8,586 $7,888 $7,022
Down Payment $1,717 $1,578 $1,404
Total Interest $629 $1,187 $1,880
Price with Interest $9,215 $9,075 $8,902