Auto Loans in Yakima (WA)

Have you considered getting your car loan pre-approved? You ought to, for it makes shopping for a car a much simpler process. Our company assists shoppers in Yakima and throughout the state of Washington, helping them discover a lender or dealer in Yakima willing to offer them affordable rates for financing. More often than not, we’re able to match borrowers with an appropriate lender or dealer in real time.

New versus Used Auto Loans for Yakima Residents

Everybody likes the smell of a new car, but there are some things to think about when buying a new car or truck. Various financial specialists advise against buying a new car. This is because their resale value decreases so quickly, which means negative equity is a more significant risk. In order to keep your loan amount in line with the value of your vehicle, lenders typically require about double the down payment for a new car versus a used one. However, new car loans come with lower rates, and it is sometimes easier to finance a new car with bad credit. If you’re unsure, a vehicle finance professional will help you decide if a new our preowned vehicle is right for you.

Used Car Financing in Yakima

In the world today, a vehicle that’s a few years old ends up being a better investment than a new one.

The annual percentage rates for used cars and trucks are a little higher, but this outlay is made up for in lower sticker prices and rates of depreciation. Many banks and finance companies, however, will require that you buy from a dealer as opposed to a private party. Here is a comparison of new and used vehicle loans in Yakima, Washington. These numbers are based on these assumptions:

  • Two year old used vehicle.
  • Credit score of 690 to 720.
  • Fixed APR.
New Car Used Car
Price $17,000 $8,500
Down Payment $3,400 $850
Loan Rate 5.20% 8.90%
Months 60 48
Monthly Payment $257.90 $190.01
Finance Fees $1,874 $1,470
Total Paid $18,874 $9,970

Bad Credit Car Loans in Yakima

There are a number of drawbacks to financing a car with bad credit:

  • You have to pay more in interest.
  • You have to put more money down.
  • You have to repay the loan more quickly.

Far too many consumers are convinced they have to purchase from a buy here pay here dealer in Yakima, on account of credit problems, but it’s best to stay away from these dealerships. We have the solution. We specialize in serving customers who have credit problems of all kinds, getting them the loans they need.

Mistakes on an individual’s credit report have grown fairly prevalent. Have you made certain your bad credit isn’t being caused by such issues?

You should inspect your credit report no less than once a year. Failing to take action could result in higher rates, scaled-down loans, and less chance of approval.

Buy Here Pay Here Dealers in Yakima, Washington

Buy here pay here dealers would love you to think that they are your only option. However, this is hardly ever the way it is. Normally, dealer finance is sourced elsewhere, as dealerships work with banks and lenders with whom they have relationships to provide the loans, but buy here pay here dealers are the actual source of the loans. You will find that higher-mileage autos are the only thing available, and these Yakima dealers may make you make payments weekly, in person. The rates of vehicles being repossessed are quite high, much like the interest rates. That isn’t all: these dealers almost never report to the credit bureaus, which means you could make every single payment month after month without improving your FICO score.

Yakima Income and Finances

  • Income Per Annum: $20,402
  • Monthly Income: $20,402
  • Recommended Car Payment: $136 (8% of monthly income)

How much you should devote to a car is based on a number of factors. The numbers below derive from a monthly payment of $136, which is 8% of the average consumer’s monthly income in Yakima, as well as a 20% down payment and 5-year loan. Lending rates are simply estimations.

Good Credit Fair Credit Subprime Credit
Monthly Income $1,700 $1,700 $1,700
Car Payment $136 $136 $136
Loan Rate 3.80% 7.00% 10.20%
Car Price $9,276 $8,585 $7,964
Down Payment $1,855 $1,717 $1,593
Loan $7,421 $6,868 $6,371
Interest Paid $739 $1,292 $1,789
Total with Interest $10,015 $9,877 $9,753