Auto Loans in Auburn (WA)

When it comes to getting an auto loan in Auburn, few companies have simplified credit approval like we have. Our team helps clients in Auburn get approval online for financing on a regular basis. Typically, we’re able to match applicants with an interested dealer or lender in Auburn, even if their credit has been affected by credit problems such as bankruptcy or repossession.

Auto Loans in Auburn for New Vehicles

It’s estimated that more than 70% of shoppers in Auburn finance or lease their new cars. Buying a new car is generally easier than buying one that’s preowned, as you don’t have to worry about the car or truck’s condition or history, the interest rates are lower, and the titling and registration process is much simpler. However, a down payment of 20% is typically a requirement on a new car, and you shouldn’t plan to trade in the vehicle until it’s been paid off. Otherwise, any negative equity you have in the vehicle will translate into debt you owe. If you’re not sure whether a new or used vehicle is right for you, consulting an automotive finance professional will help you decide whether a new our preowned vehicle is right for you.

Financing a Used Vehicle in Auburn

If you’d like to lessen negative equity, you ought to purchase a used car. Lenders demand slightly higher loan rates on previously-owned vehicles, but down payments are not but 50% of what they are for new cars and trucks that cost the same. Even if you are upside-down on a used car or truck, it typically won’t be for as long, since these loans are typically in the 36-48 month range, whereas the average new vehicle loan last 60+ months. With a shorter term loan, you will have higher monthly payments, but fewer of them overall. This translates to less total interest paid, and you will own the vehicle free and clear in less time.

Below, you will find the following figures to help you determine if you ought to purchase a vehicle that’s new or used. This assumes a two year old vehicle that has lost 50% of its value, and a borrower with a credit score of 690 to 720.

New Car Used Car
Price $28,330 $14,165
Down Payment $5,666 $1,417
APR 5.20% 8.90%
Duration 5 years 4 years
Monthly Payment $429.78 $316.64
Interest Paid $3,123 $2,450
Total Paid $31,453 $16,615

Auburn Car Loans for Bad Credit

The vast majority of lenders check a credit score customized for the automotive industry. This score draws on your history with car loans and leases, and it’s only for lenders. Although low credit scores might make it challenging to buy the car you’d like, it’s not out of the question. More than likely, we can find you a dealer or lender within driving distance who is ready to approve your credit.

A big component of your credit score is influenced by your record of payments. That means a car loan, being a major loan, can help you repair your credit. Indeed, you may be able to refinance your vehicle after your score has increased sufficiently. Settling on an appropriate payment amount is critical. To illustrate, let’s pretend you have an income of $2,833 per month, the average for Auburn residents.

  • Low Payment: $142 (5%)
  • Intermediate Payment: $227 (8%)
  • Maximal Payment: $283 (10%)

Auburn Buy Here Pay Here Dealerships

Many people in Auburn and throughout Washington resort to buy here pay here dealerships, often known as in house financing dealers, thinking they can only get approved at such a place. Not the case. Typically, dealer financing isn’t direct to the consumer, as dealers go through off-site banks and lenders to provide the loans. By contrast, BHPH dealers don’t. They are the actual loan originator.

In most cases, higher-mileage vehicles are the only models for sale, and you may be required to pay weekly, in cash. Rates of repossession are high, much like the interest rates. There is a good reason that these car dealers don’t have a great reputation. Let us place you in the hands of a reputable dealer who will work with you, not matter your credit.

Auburn Income and Finances

Auburn, WA

  • Per-Year Income: $33,994
  • Monthly Income: $33,994
  • Average Car Payment: $312
  • Suggested Car Payment: $142 to $283 (5-10% of monthly income)

To sum up, the optimum finance package includes a down payment of 20%, car payment of less than 10% of monthly income, and a repayment term of 5 years or less. Given an income of $2,833 a month, let’s look at how much car you could buy given your credit.

Prime Credit Okay Credit Poor Credit
Car Payment $227 $227 $227
Interest Rate 3.80% 7.00% 10.20%
Months 60 60 60
Sticker Price $15,459 $14,307 $13,272
Down Payment $3,092 $2,861 $2,654
Borrowed Funds $12,367 $11,446 $10,618
Interest Paid $1,232 $2,153 $2,981
Total Investment $16,690 $16,460 $16,253

Your New Car is Waiting!

We’re your trusted source for car loans in Auburn. We charge no application fees, and you could be pre-approved for financing in no time.