Auto Loans in Folsom (CA)

Financing a car is no small decision, but if you approach the auto lending process properly, you will save a lot down the road. We’ve spent years securing a network of dealers and lenders across the United States, and we specialize in matching you to the lender that is most likely to fit your needs. It truly is tough to imagine a better way to arrange the financing you need.

Auto Loan Rates in Folsom

Rate of interest is a big question for most borrowers, and when it comes to setting your actual rate, there are numerous things. Your history of credit is the most important. If your credit is strong, you will enjoy a great annual percentage rate. If it isn’t, you simply won’t. Say you borrow $27,464 at 3.50% APR, because you have a strong credit score. You would, over a period of 60 months, pay $2,513 in interest. However, if you have a low credit score and a rate of 11.00%, you would pay $8,364 in interest. Loan providers need your application in order to give you a rate of interest, so be sure you submit your application.

Financing a Preowned Vehicle in Folsom

More often than not, a car or truck that has some mileage under its belt is a significantly better deal than a brand new one. A one year old car isn’t worth but about 65% of the original price. Financing less means less interest charged, even when you’ve got a more significant rate of interest. Consider, however, that there are limits on the vehicle in terms of age, mileage, and type. These vary from lender to lender, but typical standards are the following: Vehicle must have less than 100,000 miles and not be more than 7 years old. It is advisable to have the vehicle inspected prior to purchase, or consider getting a used vehicle that has been checked and certified by the car maker itself.

Folsom Bad Credit Car Loans

Have less-than-perfect credit as a result of unpaid bills, company layoffs, repossession, or bankruptcy? There’s good news, though: there are finance companies and dealers in Folsom that say yes to people who have bad credit. Through us, you can contact an auto lending professional from a dealer or lender in your area who is ready to fund your loan.

A large portion of your credit score is calculated from your payment history. That means an auto loan, being a major loan, can help you in rebuilding your credit. Having said that, missing just one payment can reduce your score significantly.

Allocate 8% of your monthly income, at most, for your auto loan. For people in Folsom who make $3,433 per month, this is $275.

Buy Here Pay Here Car Lots in Folsom, California

The BHPH industry continues to grow, largely due to the fact that so many people’s credit ratings were hit by the credit crunch and housing market. Sure, they don’t perform credit assessments, so your credit problems shouldn’t be a hurdle, but chances are you will pay too much in terms of down payment and interest rate.

You will see that used cars and trucks are the only ones offered, and these are not no down payment car loans. In most cases, the down payment is equivalent to the vehicle’s wholesale value, and lending rates that cozy right up to the state’s maximum legal limit are not out of the ordinary. Worse, these dealers very rarely report to the credit bureaus, which means you could make all of your payments when they’re due without a lift in your credit score.

Purchasing a Vehicle in Folsom: Loan Amounts

The maximum loan you can get will depend on the amount of money you earn, and how good or bad your credit scores are. Have a look at these amounts for the average Folsom resident who makes $3,433 monthly.

Credit Multiplier Amount Borrowed
Excellent Credit 10 $34,330
Fair Credit 9 $30,897
Temporary Bad Credit 8 $27,464
Bad Credit 7 $24,031
Terrible Credit 6 $20,598

It’s wise to borrow less than you can, just to save yourself some income for emergencies.

How Much Car You Can Afford with $275 Monthly Payment

In summary, the recommended car loan carries a down payment of 20%, car payment of less than 10% of monthly income, and a repayment term of 5 years or less. Provided an income of $3,433 per month, let’s find out what price car you could buy based on your credit.

Great Credit Fair Credit Poor Credit
Monthly Income $3,433 $3,433 $3,433
Payment $275 $275 $275
APR 3.50% 7.00% 11.00%
Car Price $18,871 $17,337 $15,789
Money Down $3,774 $3,467 $3,158
Interest Paid $1,381 $2,609 $3,847
Total Paid $20,253 $19,946 $19,636