Auto Loans in Placentia (CA)

If you’re considering financing a car in Placentia, few companies have refined credit approval like ours has. Our network of financing specialists is unmatched, and we have one of the best success rates in the market. It is tough to imagine a more convenient way to finance your next car.

New versus Pre-owned Cars in Placentia

New cars and trucks begin losing value the minute they’re purchased, but they are eligible for lower rates of interest than pre-owned ones. In spite of more expensive interest rates, used cars save you money, as is clear from the figures that follow.

New Car 1 Year Old 2 Years Old 3 Years Old
Depreciation 0% 25% 40% 50%
Price $26,400 $19,800 $15,840 $13,200
Down Payment $5,280 $1,980 $1,584 $1,320
APR 5.00% 7.50% 7.50% 7.50%
Duration 60 months 48 months 48 months 48 months
Payment $398.56 $430.87 $344.69 $287.25
Interest $2,794 $2,862 $2,289 $1,908
Total Cost $29,194 $22,662 $18,129 $15,108

Essentially, a new car loses half of its initial value after three years of ownership. Is having a brand new car worth two times the price? Naturally, the choice is yours.

Buying a Car with Bad Credit in Placentia

Maybe you have a low credit score resulting from overdue bills, job loss, repossession, or even bankruptcy? Nobody wants to deal with a credit denial. That is why it’s important to contact a company in Placentia that has experience with problematic credit. More than likely, we can match you with a dealer or lender in your area who is ready to approve you for financing.

You want to buy a vehicle to suit your credit, not the other way round, so the financing conversation often comes first and foremost. Your dealer will typically need you to offer proof of income through pay stubs or tax statements, coupled with a current lease or power bill that has your place of residence on it. Your finance specialist will have more information. Basically, your loan payment should be just 5-8% of your monthly income. As an example, a typical Placentia consumer who earns $2,640 each month, the average, should plan to set aside just $132 to $211. Any higher and payment delinquency will become more likely.

Placentia Buy Here Pay Here Dealerships

People go to buy here pay here car lots, believing they will only be able to get financed with no credit check. Not so. These types of dealers provide credit lines directly, unlike conventional dealers which outsource this, and they are more focused on your income than your credit. Unfortunately, you will be faced with excessive annual percentage rates, large down payments, and cars and trucks that are too expensive for the number of miles they have. Worst of all, these dealerships don’t report to the credit agencies, which means you could make all of your payments punctually without helping your FICO score.

Loan Amounts for Placentia Consumers

Most finance companies look at your income and credit score to calculate the maximum amount they will lend you. To illustrate, check out these figures for the average Placentia resident who makes $2,640 per month.

Credit Income Factor Loan Amount
Great Credit 10 $26,400
Average Credit 9 $23,760
Slow Credit 8 $21,120
Poor Credit 7 $18,480
Really Bad Credit 6 $15,840

However, there’s the amount you can borrow, and the amount you should.

How Much Car You Can Afford with $211 Monthly Payment

Do you know how much car is feasable? Take a look at the numbers below, but keep in mind that the lending rates are only estimations, and the numbers are based upon an income of $31,683 per year, the average in Placentia. Repayment term is 5 years.

Good Credit Average Credit Bad Credit
Monthly Installment $211 $211 $211
APR 3.50% 7.00% 11.00%
Purchase Price $14,512 $13,333 $12,142
Money Down $2,902 $2,667 $2,428
Interest Paid $1,062 $2,006 $2,958

Consult a Vehicle Finance Professional Near You

There are lenders and dealers who are ready to fund your loan. Apply online, and we’ll get you approved. It’s quick, easy, and secure.