Auto Loans in Richmond (KY)

Back many years ago, you needed to visit one lender after another, applying for loans to compare rates. At Bluegrass Auto Finance, we have made it much easier to secure the auto loan you need. We’ve spent years cultivating relationships with lenders and dealers across the country, and that means we can help applicants of all credit tiers and income brackets. It’s difficult to find a better way to get approved for your next car.

New versus Used Auto Loans in Richmond

Searching for a new car? New cars have their advantages:

  • More affordable loan rates.
  • More specials available.
  • Vehicle will be under service contract for the greater part of finance term.
  • Finance for 60-72 months.

However, if your credit isn’t perfect, a new car’s sharp rate of depreciation, accompanied by high rates of interest, can result in negative equity, so a strong down payment is advised. However, new car dealerships are keen to move vehicles off the lot, and you can often secure an excellent loan through the manufacturer’s own finance company, even if you don’t have top-notch credit.

Used Car Financing in Richmond

Used cars are highly recommended for anyone intent on building wealth.

Pre-owned vehicles are known for quicker repayment periods. This typically means less interest accrued, even when you have a higher interest rate. If you’re wary of repairs and maintenance, you’ll want to get a a vehicle with low miles and good ratings in terms of dependability. In order to help you decide which type of car is right for you, review this helpful table. This is assuming a car or truck that is two years old, and has therefore lost one half of its value, and a borrower with a prime credit score.

New Car Used Car
Price $13,490 $6,745
Down Payment $2,698 $675
APR 5.00% 7.50%
Duration 60 months 48 months
Monthly Payment $203.66 $146.78
Interest Paid $1,428 $975
Total Paid $14,918 $7,720

Bad Credit Richmond Auto Loans

There are an array of issues that result in a low credit score: medical bills, foreclosure, going bankrupt, and more. With good reason, you don’t want to spend your weekends searching for a bank or dealer in Richmond that will work with subprime credit.

That’s where we can help. We serve customers on every end of the credit spectrum, helping them secure the loans they need.

Car loans can actually increase your credit scores, when you make each payment on time. In fact, many people end up refinancing at a lesser rate after a year or so of timely payments.

Allocate 8% of your monthly income, at most, for your car payment. If you are like the average Richmond resident and have an income of $1,349 per month, this is $108.

Richmond Buy Here Pay Here Financing

Maybe you’ve thought about BHPH financing because of bad credit? Typically, there are better options. These dealers will approve pretty much anybody, regardless of their credit, but there are issues.

Unfortunately, you should be prepared for excessive interest rates, big down payments, and well-used vehicles that are too expensive given the shape they’re in. If elevating your credit score is important to you, you are better off applying through us, since BHPH dealers won’t help you raise your credit.

Loan Amounts for Richmond Consumers

The amount you’ll be able to borrow will depend on how much money you earn, and how high your credit scores are. The following figures are based on an income of $1,349 monthly, the average among Richmond consumers.

Credit Score Multiplier Amount
Good Credit 10 $13,490
Fair Credit 9 $12,141
Slow Credit 8 $10,792
Bad Credit 7 $9,443
Really Bad Credit 6 $8,094

It’s always a bad idea to get a loan than you should, just because you can.

The exact amount you can devote to a new car or truck is determined by an array of variables. The estimations listed below are derived from a monthly payment of $108, which is 8% of the average consumer’s monthly income in Richmond, as well as a 20% down payment and 5-year repayment terms. Rates of interest are simply estimates.

Exceptional Credit Fair Credit Bad Credit
Payment $108 $108 $108
Interest Rate 3.50% 7.00% 12.00%
Sticker Price $7,415 $6,813 $6,064
Down Payment $1,483 $1,363 $1,213
Interest Paid $543 $1,025 $1,624
Price with Interest $7,958 $7,838 $7,688

Complete Your Application Here!

If you’ve got a low credit score, put us to work. We will match you with a dealer or lender in Richmond.