Auto Loans in Bothell (WA)

Have you been thinking of getting pre-approved for financing? It’s a good idea, as it makes buying a car a much more simple process. We serve shoppers in Bothell and across the state of Washington who want to find a lender or dealer willing to approve them based on their income, credit, and down payment. We will match you with a finance expert who can help you obtain the loan required for the vehicle you prefer.

New versus Preowned Auto Loans for Bothell Residents

Many people opt to purchase a new car versus a used one because of fewer maintenance issues and, in many cases, lower monthly payments owing to extended financing options.

But the truth is, there are potential problems too.

  • Instant depreciation.
  • More costly over time.
  • More substantial down payments expected.
  • Negative equity is a greater risk.

Because new cars are less vulnerable to service problems, however, some banks and finance companies who wouldn’t otherwise will finance them for consumers who have bad credit.

Financing a Used Vehicle in Bothell

If you’d like to lessen negative equity, finance a preowned car.

Lenders charge slightly higher interest rates on preowned cars and trucks, but down payments are not but 50% of what they are for brand new vehicles of around the same price. Keep in mind, lenders won’t approve an auto loan for that don’t meet certain conditions: Vehicle must have less than 100,000 miles and not be more than 7 years old. Below, we have compiled the following numbers that will help you decide whether you ought to get a new or used vehicle. We are assuming a car or truck two years old, having lost one half of its value, and a buyer with a credit score of 690 to 720.

New Car Used Car
Price $35,070 $17,535
Down Payment $7,014 $1,754
Loan Rate 5.20% 8.90%
Term 5 years 4 years
Monthly Payment $532.03 $391.97
Interest Paid $3,866 $3,033
Total Paid $38,936 $20,568

Bad Credit Car Loans in Bothell

Bad credit has several drawbacks:

  • You have to pay more in interest.
  • You have to have a larger down payment.
  • You have to repay the loan in less time.

Choosing the best loan provider in Bothell that serves people with bad credit is crucial. After all, you don’t want to have your application declined or be strapped with an outrageous rate of interest. Through us, you can contact a vehicle lending professional from a dealer or lender in your area who is willing to get you in the driver’s seat.

A big element of your credit score is influenced by your history of making–or missing–payments. That means an auto loan, being a major loan, can help you in re-establishing your credit.

Just be sure never to miss a payment, as it can bring down your score dramatically. You really ought to opt for an affordable monthly payment. Typically no more than 5-8% of your monthly income is recommended, or $175 to $281 if you make $3,507, the average in Bothell.

Buy Here Pay Here Auto Loans in Bothell, WA

Most people resort to buy here pay here car lots, also called in house financing car lots, thinking they can only get financed at one of these places. Not true. Such car lots provide financing on the lot, whereas most dealers contract this, and they are more concerned with your income than your credit.

You will discover that preowned vehicles are the only thing for sale, and these are not no money down car loans. In most cases, the down payment is equivalent to what the dealer had to pay for the vehicle when they bought it, and you could end up paying greater than 20% APR. And if that weren’t enough of an issue, these dealerships almost never work with the credit bureaus, and that means you could make each and every payment when they’re due without improving your FICO score.

Bothell Income and Finances

  • Income Per Year: $42,083
  • Monthly Income: $42,083
  • Typical Car Payment: $386
  • Optimal Car Payment: $281 (8% of monthly income)

Do you know how much car you can afford? Check the chart below. The interest rates have been approximated, and the numbers are derived from $42,083 in yearly income, the average in Bothell. Loan length is 5 years.

Prime Credit Decent Credit Poor Credit
Monthly Income $3,507 $3,507 $3,507
Payment $281 $281 $281
Interest Rate 3.80% 7.00% 10.20%
Years 5 5 5
Purchase Price $19,136 $17,711 $16,430
Down Payment $3,827 $3,542 $3,286
Borrowed Funds $15,309 $14,169 $13,144
Total Interest $1,525 $2,665 $3,690
Total with Interest $20,661 $20,376 $20,120