Auto Loans in Tacoma (WA)

TacomaIn the market for a new or used car or truck? Like most Tacoma consumers, you probably need a car loan. For years, we’ve been establishing relationships with dealers and lenders across the nation, and that means we can help applicants of all credit tiers and income brackets. Expect to be walked step-by-step through the auto financing process by a finance specialist based where you live.

Tacoma Auto Loans for New Vehicles

Generally, people in Tacoma finance or lease their new cars–are you looking to be one of them? Buying a new car is sometimes faster and easier than buying a used one, as you don’t have to worry about the vehicle’s condition or history. If you’re hoping to qualify for zero down car deals, though, you’ll have to have super prime credit. Most of these dealers are reserved only for the most well-qualified buyers.

If your credit leaves much to be desired, you are better off talking to an auto finance specialist to decide whether a new our preowned vehicle is best for you. In many cases, a used car is a better investment.

Used Car Auto Loans in Tacoma

Used vehicles are the best idea for consumers interested in building wealth. In fact, some personal finance experts have recommended spending no more than 10% of your gross annual income for your next car, though to be honest, it could be difficult to find a reliable vehicle at this price unless you have quite a high income.

Some individuals disregard used vehicles for having more expensive rates of interest, but bear in mind that they still don’t cost as much up front and over the long haul. Maintenance worries can be lessened by selecting a vehicle that’s just one to two years old, or obtaining an extended service contract. In this table, we’ve compared new and used car loans in Tacoma, Washington. We are assuming a vehicle two years old, having lost 50% of its value, and a buyer with a credit score of 690 to 720.

New Car Used Car
Price $16,020 $8,010
Down Payment $3,204 $801
APR 5.20% 8.90%
Length 5 years 4 years
Monthly Payment $243.03 $179.05
Finance Charge $1,766 $1,386
Total Paid $17,786 $9,396

Bad Credit Tacoma Car Loans

Bad credit has a few disadvantages:

  • You will be forced to pay more in interest.
  • You have to have a larger down payment.
  • You have to opt for a shorter term loan.

There’s good news, however: there are lending companies and dealerships in Tacoma that have experience serving credit-challenged consumers. Through us, you can contact an auto finance specialist from a dealer or lender in your area who is ready to get you behind the wheel.

An auto loan can actually increase your credit ratings. But needless to say, it’s necessary to make every one of the payments on time. Having said that, just one missed payment can damage your score substantially. Selecting the right payment amount is critical. For instance, let’s pretend you make $1,602 per month, the average for Tacoma residents.

  • 5% of Income: $80 (Ideal)
  • 8% of Income: $128 (Okay)
  • 10% of Income: $160 (Maximum)

Tacoma Buy Here Pay Here Dealerships

The BHPH industry would love you to assume that they are the only ones that will finance you, yet this typically isn’t the case. They don’t require credit checks, so your credit problems probably won’t be an obstacle, but you really pay for this down the road. You’ll find that preowned vehicles are the only ones for sale, and dealers may make you pay weekly, in person. The numbers of vehicles being repossessed are extremely high, and so are the interest rates. If elevating your credit score is important to you, and it ought to be, you are better off applying through us, since BHPH dealerships won’t aid you in improving your credit.

Tacoma Income and Finances

  • Income Per Annum: $19,225
  • Monthly Income: $19,225
  • Average Car Payment: $176
  • Optimal Car Payment: $80 to $160 (5-10% of monthly income)

Car Loan Budgeting in Tacoma

The exact amount you ought to devote to a new car or truck is based on numerous variables. These estimates are derived from a monthly payment of $128, which is 8% of the average consumer’s monthly income in Tacoma, together with a 20% down payment and 60 month loan. Lending rates are approximated.

Exceptional Credit Fair Credit Bad Credit
Monthly Income $1,602 $1,602 $1,602
Monthly Payment $128 $128 $128
Interest Rate 3.80% 7.00% 10.20%
Vehicle Price $8,741 $8,090 $7,505
Down Payment $1,748 $1,618 $1,501
Loan Amount $6,993 $6,472 $6,004
Total Interest $696 $1,217 $1,686
Total with Interest $9,438 $9,308 $9,191

Keep in mind that we serve clients all over the South Sound region, not to mention Seattle and the rest of the state.