Auto Loans in Owensboro (KY)

Owensboro, home to couple of legendary racing dynasties–the Waltrip and Hayden families–has always had roots in the automotive world, extending all the way back to the Owensboro Wagon Company of the late 1800’s. At Bluegrass Auto Finance, we’re quickly becoming another trusted name among Owensboro residents for our financing services.

Getting your Credit Pre-Approved for Financing

Owensboro, KYIt is always a good idea to research financing ahead of time, as it makes purchasing a car a much simpler process. On the lot, you can focus on the car you really want, not the funding you really need. You’ll be more immune to high-pressure sales tactics, and your ability to negotiate will be much improved, as you’ll have your loan secured.

We’ve spent years securing a network of dealers and lenders across the country, and we have lenders and dealers in Owensboro set and ready, awaiting your application. We match you with a lending expert who will guide you through the process.

Auto Loan Interest Rates in Owensboro

The number one fear for lending institutions are individuals who default on their loans. Consequently, the the stronger your FICO score, the more affordable your rate of interest will likely be. Below are some APR approximations for Owensboro.

Credit Rating New APR Used APR
Great Credit 3.5% 4%
Average Credit 4.5% 5.5%
Subprime Credit 7% 8%
Bad Credit 11% 12%
Horrible Credit 15% 17.5%

Actual rates could vary widely from these numbers, which are only to give you a basic idea of what to expect. It is difficult to estimate your interest rate without more information. Take the opportunity to submit your application, and you can find out what interest rates Owensboro dealers and lenders can offer you.

Auto Loans for Preowned Cars in Owensboro

If you’d like to lessen negative equity, you might want to opt for a used car. The shorter finance terms typical of used vehicle lending typically translate into less interest accrued, even if you have a less affordable rate. Worried you’ll face service issues? This can be lessened by looking for a vehicle that is only two or three years old, or buying an aftermarket service contract. In order to help you make a decision as to whether a new or used car loan meets your needs, consider this helpful table. These numbers rely on these assumptions:

  • Used vehicle is two years old.
  • Credit score of 690 to 720.
  • Simple Interest.
New Car Used Car
Price $14,760 $7,380
Down Payment $2,952 $738
Interest Rate 5.00% 7.50%
Months 60 48
Monthly Payment $222.83 $160.60
Finance Fees $1,562 $1,067
Total Paid $16,322 $8,447

Owensboro Bad Credit Car Loans

There are some drawbacks to car loans with bad credit:

  • You will have to pay more in interest.
  • You have to put more money down.
  • You have to pay back the loan more quickly.

Even though bad credit could make it harder to purchase the car you want, you’ve got a few different options. That’s where we come in. We are dedicated to serving customers with credit problems of all kinds, getting them the loans they need.

Seeking out a car that will fit your needs and budget is extremely important, especially if you will have a high interest rate because of credit problems. To get the lowest rate available, you’ll want to ask the dealer the buy rate, or the rate offered by the lender before the dealership has tacked on extra points for sourcing the loan. Don’t be lured into financing a car which costs more than you feel comfortable with. Higher payments mean higher risk of falling behind, which is just about the very last thing you need..

Owensboro Buy Here Pay Here Dealers

People in the BHPH industry would like you to believe that they are your only option. However, this is seldom the case. These dealers provide auto loans directly, whereas the vast majority of dealers outsource this, and they typically don’t even check your credit. The fact is, you can expect high interest rates, huge down payments, and cars and trucks that are too expensive for their mileage. Is elevating your credit important to you? If so, you are better off applying through us, since buy here pay here dealerships won’t help you in re-establishing your credit.

How Much You Can Finance, and How Much You Should

Curious as to how much you can finance based on factors like your credit and income? The following numbers are based of of an income of $1,476 monthly, the average in Owensboro.

Credit Multiplier Amount
Excellent Credit 10 $14,760
Fair Credit 9 $13,284
Temporary Bad Credit 8 $11,808
Bad Credit 7 $10,332
Really Bad Credit 6 $8,856

The amount you can borrow, and the amount you really ought to, aren’t one in the same. Below we have a table showing what car can be afforded with a monthly payment of $118, 20% down payment, and 5-year term.

Excellent Credit Decent Credit Subprime Credit
Payment Amount $118 $118 $118
Rate 3.50% 7.00% 12.00%
Months 60 60 60
Vehicle Price $8,114 $7,454 $6,635
Down Payment $1,623 $1,491 $1,327
Total Interest $594 $1,122 $1,777
Price with Interest $8,708 $8,576 $8,412

Your Car Loan is Waiting

At Bluegrass Auto Finance, we take great pride in getting in the driver’s seat of a new car. A finance manager will lead you through the approval process, helping you obtain an acceptable rate.