Auto Loans in Lancaster (CA)

In the market for a new or used car or truck? If you are like the majority of Lancaster consumers, there’s a good chance you are going to need an auto loan. We’ve spent years securing a network of dealers and lenders across California, and we have some of the best approval rates you’re apt to find. Experience the convenience of having a dedicated lending professional to help answer your questions and line up your loan.

New versus Pre-owned Cars in Lancaster

If you’d like the very best bang for your buck, then a used car is the best option. In spite of increased interest rates, used cars cost less, as this table depicts.

New Car 1 Year Old 2 Years Old 3 Years Old
Sticker Price $23,010 $17,258 $13,806 $11,505
Money Down $4,602 $1,726 $1,381 $1,151
APR 5.00% 7.50% 7.50% 7.50%
Length 5 years 4 years 4 years 4 years
Monthly Payment $347.38 $375.54 $300.43 $250.36
Total Interest $2,435 $2,494 $1,995 $1,663
Total Paid $25,445 $19,752 $15,801 $13,168

Essentially, a brand new car loses a quarter of its value in the 12 months you own it, so a year-old car can be a great buy. Ultimately, the choice is yours.

Lancaster Auto Loans with Bad Credit

The vast majority of auto lenders judge your credit based on your auto-enhanced credit score. This score is weighted by your past experience with auto loans and leases, and it’s only for lenders. Choosing the best loan provider in Lancaster that is focused on bad credit is critical. Otherwise, you could be rejected or deal with an exorbitant interest rate. When you apply for financing through Golden West Auto Finance, our team works to find you a dealer or lender in our network who is willing to get you behind the wheel.

Studies have revealed that 40 million people in America have mistakes on their credit report, most of which result in a decreased credit score

Thank goodness, it is pretty simple to resolve these kinds of irregularities, and it could help you secure a lower and better terms.

Buy Here Pay Here Car Lots in Lancaster, California

The buy here pay here industry has boomed in recent years, mainly because so many people’s credit scores took hits on account of the economy. Most dealer finance is indirect, in that dealerships work with a network of lenders to provide the loans, but BHPH dealers don’t. They provide auto loans independently. You will discover that higher-mileage vehicles are the only ones for sale, and these aren’t no down payment car deals. Quite often, the down payment is not much less than what you would pay for the vehicle on the private market, and lending rates that border the state’s maximum legal limit are typical. That isn’t all: these car lots almost never report back to the credit agencies, and that means you could make each and every payment month after month with no boost to your credit score.

Lancaster Income and Finances

  • Annual Income: $27,606
  • Income Per Month: $2,301
  • Average Car Payment: $253
  • Optimal Car Payment: $115 to $230 (5-10% of monthly income)

Vehicle Budgeting in Lancaster

In conclusion, the optimum finance package incorporates a down payment of 20%, car payment of less than 10% of monthly income, and term length of 60 months or less. Given an income of $2,301 a month, let’s check out what price car you could buy based upon your credit.

Prime Credit Okay Credit Subprime Credit
Income Per Month $2,301 $2,301 $2,301
Monthly Payment $184 $184 $184
Rate 3.50% 7.00% 11.00%
Sticker Price $12,649 $11,621 $10,583
Down Payment $2,530 $2,324 $2,117
Note Size $10,119 $9,296 $8,466
Interest Paid $926 $1,748 $2,578