Auto Loans in Castro Valley (CA)

Having your auto loan arranged ahead of time is a wise approach, because it removes many of the stumbling blocks from the car-shopping experience. We work with a diverse network of dealers and lenders, and we have some of the highest approval rates in the industry. We connect you to a finance specialist to assist you step by step.

Financing a New Vehicle in Castro Valley

Through our extensive network of lenders and dealers, auto loans for new and pre-owned vehicles are available. Choosing between a new and pre-owned vehicle can be complicated. Various financial specialists will tell you to think twice before investing in a new car. This is because they depreciate steeply from the time of purchase, meaning that you may wind up owing more on the car than it is worth. For this reason, banks and finance companies normally require nearly double the money down for a new car versus a used one. On the flip side, new car loans have more affordable rates, and assuming you have a favorable credit record, zero down auto loans may be an option. If you’re not sure, an automotive finance professional could help you determine whether a new our used vehicle is best for you.

Financing a Preowned Vehicle in Castro Valley

Used cars and trucks offer several different substantial merits:

  • They are cheaper to buy.
  • The down payments are about half as much.
  • They aren’t devalued as rapidly.

Sometimes people discount preowned autos for having less affordable rates, but bear in mind that they are less expensive in upfront cash and over the long haul. Not surprisingly, lenders won’t approve financing for just any preowned car or truck. It must meet specific criteria:

  • Miles: maximum of 70,000 to 100,000 miles.
  • Model Year: maximum of 7 years old.

In the following table, we’ve placed side by side the costs of new and used auto loans in Castro Valley, California. We’re assuming a vehicle three 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 $68,070 $34,035
Down Payment $13,614 $3,404
Interest Rate 5.00% 7.50%
Length 60 months 48 months
Monthly Payment $1,027.65 $740.64
Interest Paid $7,203 $4,919
Total Paid $75,273 $38,954

Considerations for People in Castro Valley with Bad Credit

The vast majority of auto loan providers evaluate your credit based on a credit score designed for the motor vehicle industry. This score draws on your previous experience with car loans and leases, and it’s only for lenders. While a bad credit score can make it challenging to buy the car you’d like, you’ve got a number of options. Fortunately, we are known for serving customers who have credit problems of all kinds, getting them the loans they need.

If you have good credit rating, your first priority will be to check out the vehicles that are for sale. However, with bad credit, you will focus your attention more on your interest rate, lending terms, and down payment.

Your dealer may require you to show proof of income in the form of pay stubs or income tax returns, and also a lease or utility bill with your place of residence. Your dealer salesperson assist you through this process. Regardless of what your credit score is, you should be able to find a vehicle you can finance. It’s best if the payments are roughly 5 to 10% of your monthly income. If you earn $6,807 per month, you should have a payment of $340 (5%) to $681 (10%).

Castro Valley Buy Here Pay Here Dealers

Most people head for buy here pay here auto lots, believing that they will only be able to get financed at a place like this. Rarely is this the case. As a rule, dealer financing is sourced elsewhere, as dealerships work with off-site banks and lenders to provide the loans, but BHPH dealers provide car loans themselves. Disadvantages include excessively high rates of interest, money due at signing, and vehicle prices, and it’s likely you’ll get a car or truck that wound up being repossessed at least once This is why these car dealers don’t have an outstanding reputation. Let us place you with subprime finance professional who can get you behind the wheel of a really good car, even if you’ve experienced bankruptcy.

Castro Valley Income and Finances

  • Yearly Income: $81,684
  • Monthly Income: $6,807
  • Ideal Car Payment: $340 to $681 (5-10% of monthly income)

To conclude, an ideal car loan is as follows: down payment of 20%, car payment of 8% of monthly income, and a repayment term of 5 years or less. Provided an income of $6,807 per month, let’s find out what price car you could buy based on your credit.

Great Credit Average Credit Poor Credit
Income Per Month $6,807 $6,807 $6,807
Car Payment $545 $545 $545
Rate 3.50% 7.00% 11.00%
Term Length 60 Months 60 Months 60 Months
Vehicle Price $37,418 $34,377 $31,307
Down Payment $7,484 $6,875 $6,261
Loan Amount $29,934 $27,501 $25,046
Interest Paid $2,739 $5,172 $7,628