Auto Loans in Port Orchard (WA)

If you are interested in a new car, you probably will need an auto loan to afford the car you want.

Our experience in the auto finance market is unequalled, which means we can help applicants from every financial background. Generally, we can place car shoppers with an interested dealer or lender within seconds of application.

New and Used Auto Loans in Port Orchard

There are significant benefits to purchasing a new car, including no hassle maintenance and a variety of dealer promotions.

However, if your credit isn’t ideal, the quick loss of a new car’s resale value, in addition to high rates of interest, can lead to negative equity, so a decent down payment is advisable. However, lenders consider new vehicles as less risky than used ones, so it could be easier to get a new auto loan if you’ve got less-than-perfect credit.

Financing a Preowned Car in Port Orchard

You can opt for a car a few years old and still have a trustworthy, low mileage vehicle.

Lenders demand slightly higher rates on preowned vehicles, but down payments are not nearly as high as what they are for brand new vehicles of a similar price. Keep in mind, though, that there are vehicle restrictions which vary from one lender to another, but typical standards are listed below:

  • Mileage: less than 70,000 to 100,000 miles.
  • Year of Production: no more than 7 years old.
  • Light vehicles only.

Below, you will find the following data that will help you determine whether you ought to get a vehicle that’s new or used. This is assuming 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 $40,690 $20,345
Down Payment $8,138 $2,035
Interest Rate 5.20% 8.90%
Duration 60 months 48 months
Monthly Payment $617.28 $454.79
Finance Fees $4,485 $3,519
Total Paid $45,175 $23,864

Financing a Car in Port Orchard with Bad Credit

For the most part, loan providers evaluate your credit based on a credit score designed for the automobile industry. This score draws on your previous experience with car loans and leases. Too many people believe they have to finance through one of the buy here pay here car dealerships in Port Orchard, due to below-average credit, but chances are you can get a car loan at a cheaper rate from a better company. More than likely, we can find you a dealer or lender within driving distance who wants to approve you for financing.

Reports are showing that 1 in 5 consumers has at least one mistake on their credit report, as reported by one or all three of the major credit reporting agencies.

Luckily, it’s not very hard to challenge such mistakes, and it could help you secure:

  • Reduced loan rates
  • Smaller down payments
  • Bigger amount borrowed

Port Orchard Buy Here Pay Here Financing

People today in Port Orchard turn to buy here pay here car lots, convinced that they can only get financed at one of these places. Not so. A lot of dealer finance is outsourced, in that dealers work with various lenders to provide the loans, but buy here pay here dealers are the actual source of the loans.

Drawbacks include:

  • Ridiculous Finance Fees
  • Huge Down Payments
  • Overpriced Vehicles
  • Aggressive Repossession Tactics

If that weren’t enough, these car lots almost never report to the credit bureaus, and that means you could make each and every payment as agreed without reviving your FICO score.

Port Orchard Income and Finances

  • Gross annual Income: $48,833
  • Income Per Month: $48,833
  • Optimal Car Payment: $326 (8% of monthly income)

Overall, the optimum funding arrangement is as follows: down payment of 20%, car payment of 5-8% of monthly income, and term length of 5 years or less. With an income of $4,069 per month, let’s see the amount you could spend given your credit.

Excellent Credit Decent Credit Poor Credit
Monthly Income $4,069 $4,069 $4,069
Car Payment $326 $326 $326
Rate 3.80% 7.00% 10.20%
Years 5 5 5
Car Price $22,203 $20,549 $19,062
Down Payment $4,441 $4,110 $3,812
Amount Borrowed $17,762 $16,439 $15,250
Total Interest $1,769 $3,092 $4,281
Total with Interest $23,972 $23,641 $23,344