Auto Loans in Federal Way (WA)

Arranging your financing ahead of time is an intelligent strategy, as there are many advantages:

  • Much less time spent on the car lot.
  • Possibility of a reduced APR.
  • Improved negotiating power.

As opposed to waiting until you are in negotiations at the dealership, we enable you to apply for a car loan in advance. Expect to be walked one step at a time through the process by a finance specialist near you.

New and Preowned Car Loans in Federal Way

There are some things take into consideration when buying a new car. A number of personal finance experts will tell you to think twice before investing in a new car. This is because their resale value decreases so quickly, which means you’re more likely to wind up upside down on your loan. That said, a new car might be easier to finance with no down payment, simply because of dealer discounts and such. Ultimately, you are best off speaking with an auto finance specialist to decide whether a new vehicle is best for you.

Auto Loans for Preowned Cars in Federal Way

In lots of ways, a vehicle that’s two or three years old is a far better purchase than a new one.

Auto loans for used cars are often paid off more quickly than new ones. This typically means less interest paid, even if you’ve got a less affordable rate. A number of loan companies, however, will want you to purchase from a dealership as opposed to a private party. To help you decide which sort of car meets your needs, review this helpful chart. These estimations are based on these assumptions:

  • New car costs $26,830.
  • Used vehicle is two years old.
  • Credit score of 690 to 720.
  • 20% down payment for new car, 10% for used.
  • Fixed APR.
New Car Used Car
Price $26,830 $13,415
Down Payment $5,366 $1,342
Interest Rate 5.20% 8.90%
Months 60 48
Monthly Payment $407.02 $299.88
Interest Paid $2,957 $2,321
Total Paid $29,787 $15,736

Federal Way Car Loans for Bad Credit

Credit score is a key factor when purchasing a car not just in Federal Way, but everywhere. Has yours taken a few licks? Luckily, there are lending companies and dealers in Federal Way that finance people who have credit problems.

Chances are we can match you with a dealer or lender in our network who wants to work with your credit.

Credit report errors are actually relatively commonplace. Have you made sure your credit report is devoid of mistakes?

One time a year, you can check your credit free of charge at Annual Credit Report, a site created by the leading credit bureaus, and be sure you are charged the interest rate that’s as low as possible.

Federal Way Buy Here Pay Here Car Lots

Perhaps you have considered heading to a buy here pay here dealer for approval? Ordinarily, there are considerably better options. Such dealerships grant auto loans on the lot, unlike regular dealerships which contract this, and they are more concerned with your income than your credit. Downsides include:

  • Outrageous Interest
  • Extortionate Down Payments
  • Overpriced Vehicles
  • Aggressive Repossession Tactics

If boosting your credit score is important to you, you are better off applying through us, since BHPH dealers can’t help you strengthen your credit.

Federal Way Income and Finances

  • Annual Income: $32,194
  • Monthly Income: $32,194
  • Suggested Car Payment: $134 to $268 (5-10% of monthly income)

In general, the ideal funding arrangement carries a down payment of 20%, car payment of 5-8% of monthly income, and a repayment term of 60 months or less. Provided an income of $2,683 monthly, let’s see the amount you could spend based on your credit.

Great Credit Okay Credit Bad Credit
Car Payment $215 $215 $215
APR 3.80% 7.00% 10.20%
Months 60 60 60
Car Price $14,640 $13,550 $12,569
Money Down $2,928 $2,710 $2,514
Amount Borrowed $11,712 $10,840 $10,055
Total Interest $1,166 $2,039 $2,823
Total Paid $15,806 $15,588 $15,392