Auto Loans in Daly City (CA)

Having your loan approved upfront is a very good approach, as there are many benefits:

  • Less time on the dealer lot.
  • Chance of a more affordable rate of interest.
  • Superior negotiating power.

For years, we’ve been establishing relationships with lenders and dealers across California, and we have some of the highest rates of approval in the business. You will be walked step-by-step through the auto financing process by a financing specialist in Daly City.

New versus Used Cars in Daly City

Both used and new vehicles can be purchased through our partnered dealers, banks, and finance companies. Consider this breakdown of what it costs to finance a $20,870 car as it ages from new to 3 years old.

New Car 1 Year Old Car 2 Year Old Car 3 Year Old Car
Percent of Original Price 100% 75% 60% 50%
Price $20,870 $15,653 $12,522 $10,435
Down Payment $4,174 $1,565 $1,252 $1,044
Interest Rate 5.00% 7.50% 7.50% 7.50%
Length 60 months 48 months 48 months 48 months
Payment $315.07 $340.61 $272.49 $227.08
Interest Paid $2,208 $2,262 $1,810 $1,508
Total Paid $23,078 $17,915 $14,332 $11,943

Newer cars are seen as lower risks, however, so they may be financed more easily if your credit isn’t good.

Bad Credit Car Loans in Daly City

If you’ve got excellent credit, you will probably enjoy affordable loan rates and great terms. Unfortunately, many individuals have struggled with credit problems stemming from the economic downturn. You don’t want to deal with being rejected for a loan, and therefore you’ll want to locate a company in Daly City that has experience with low credit scores. Through us, you can contact a vehicle lending professional from a lender or dealer in our network who wants to get you behind the wheel.

If you have a good credit rating, first of all you will explore all of the cars and trucks that are for sale. If you have bad credit, however, you will spend more time discussing your interest rate, lending terms, and down payment. Car dealerships have been known to charge more expensive rates than you’d receive from the lender. To ensure that you get a reasonable rate, make sure you ask the dealer the buy rate. This is the rate offered by the lender before the dealer has tacked on extra points for setting up the loan. Regardless of what your credit score is, there has to be a vehicle you can afford. It would be wise of you to find a vehicle with a payment that is between 5 to 10% of your monthly income. If you earn $2,087 per month, this is a payment of $104 (5%) to $209 (10%).

Buy Here Pay Here Car Lots in Daly City, CA

Buy here pay here dealers ordinarily finance people with truly serious credit problems like:

  • Chapters 7 or 13
  • Foreclosure
  • Auto Repossession
  • Tax Liens

For the most part, dealer financing is indirect, in that dealerships work with a network of lenders to provide the loans, but buy here pay here dealers make credit decisions on site, generally with no credit check. The fact is, you can expect high annual percentage rates, high down payments, and cars and trucks that are too expensive for their mileage and condition. There’s more: these dealers don’t work with the credit bureaus, so you could make each and every payment when they’re due without improving your FICO score.

Daly City Consumer Profile

  • Income Per Year: $25,049
  • Monthly Income: $2,087
  • Typical Car Payment: $230
  • Suggested Monthly Payment: $104 to $209 (5-10% of monthly income)

Daly City Auto Finance Rates and Payments

Here we have a table demonstrating what car can be afforded with a payment per month of $167, 20% down payment, and 5-year term.

Exceptional Credit Okay Credit Subprime Credit
Monthly Income $2,087 $2,087 $2,087
Car Payment $167 $167 $167
APR 3.50% 7.00% 11.00%
Repayment Years 5 5 5
Vehicle Price $11,472 $10,540 $9,599
Money Down $2,294 $2,108 $1,920
Total Interest $840 $1,586 $2,339