There is great news for people who want to buy a new or used car!  The rates that the banks are paying for money has been lowered greatly and they are passing these savings on to you.  Auto loan rates have decreased and some lenders are extending the length of your payment schedule making it a prime time for you to finance a car.  This good news even applies to people with poor credit ratings.
Of course, if you are interested in buying a used car with bad credit, you still need to go through the basics.  This includes looking at your finances and deciding how much you can afford to pay a month and what is your down payment or trade in value.  Also, know what your credit score is.  This will determine the interest rate on your car loan.  The higher your credit score the lower your interest rate will be.  Here are some examples of interest rates, compared to credit scores and the payments on a loan of $20,000.  These are estimates.

  • Super Prime (740 or higher) – Average loan interest rate is 3.2% for new and 4.4% for a used car.  Monthly payment – $357.00
  • Prime (680-739) – Average loan interest rate is 4.5% for new and 6.4% for a used car. Monthly payment – $368.00
  • Nonprime (620-679) – Average loan interest rate is 6.5% for new and 9.5% for a used car.

Monthly payment – $386.00

  • Subprime (550-619) – Average loan interest rate is 9.9% for new and 14.4% for a used car.  Monthly payment – $419.00
  • Deep Subprime (549 or lower) – Average loan interest rate in 12.8% for new and 17.9 for a used car.  Monthly payment – $447.00

As you can see, the lower auto loan rates include people with lower credit scores.  Now you need to shop for the best rates.  If your credit score is Super prime or Prime, you will have many options for your financing.  If your credit score is below this, you need to shop around for the best interest rates.  At Loanstore.com, you will find a lender more than willing to help customers with lower credit scores.  They are your subprime auto lender.
So, get all your information together, do your research, get pre-qualified so you know what cars you can afford and your lender will finance.  Take advantage of these great lower auto interest rates!  Start driving that new car today!