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Auto Loans in Arkansas (AR)

An applicant’s credit score is essential when it comes to auto loans. The annual percentage rates for bad credit auto loans in Arkansas are dramatically higher than those for consumers with excellent credit, and approval rates are much lower than they once were. But don’t worry. We think that everyone should get auto financing, in spite of their credit scores. Here’s how the process works:

Bad Credit Approvals for Arkansas Residents
  • Step 1: Our 60-second application is remarkably simple to submit.
  • Step 2: Our system leverages a network of hundreds of subprime lenders.
  • Step 3: Authorization usually takes no more than 2 days.

Bad Credit Car Dealerships in AR

Car dealers that have sub-prime finance divisions tend to be known as bad credit car dealers. As compared to a buy here pay here car lot, such dealers are able to offer less expensive rates and more desirable terms. Your income and credit will determine the cars you can finance. Here is an example based on the average per-person income in Arkansas, $2,843 per month:

Minimum Credit Score Income Factor Loan
700 10 $28,432
625 9 $25,589
575 8 $22,745
525 7 $19,902
300 6 $17,059

These sums are not guaranteed. You might not have the ability to borrow this much, especially if you do not have a solid record with previous car loans and/or leases.

Submit your application to talk to a finance specialist about how much you can borrow.

Can You Get a Car Loan with No Down Payment?

Do you have a down payment saved for your new car? You might need one. If you are concerned about your ability to supply the funds for a down payment, a pre-owned car might be more reasonable.

New Car Used Car 1 Used Car 2 Used Car 3
Age New 1 year old 2 years old 3 years old
Percentage of Original Value 100% 75% 60% 50%
Price $28,432 $21,324 $17,059 $14,216
Percentage 20% 10% 10% 10%
Money Down $5,686 $2,132 $1,706 $1,422

People in Arkansas do buy cars without down payments, but it’s more common to trade in their old car or truck to fulfill any down payment criteria.

In House Financing Dealerships in AR

Car dealers in Arkansas that offer in house financing have several commonalities. They…

  1. Supply car loans in house.
  2. Rarely check your credit.
  3. Require weekly or twice-monthly payments, often at the lot.

A lot of people with really bad credit think that an in house financing car lot is the only place that will be willing to accept their credit, even though the annual percentage rates are more expensive than you’d get from a conventional lender. Aside from that, they don’t usually report payments to the credit reporting agencies, meaning the borrower’s credit rating isn’t likely to improve even if they pay off the loan as scheduled.

Cars in Arkansas For Your Budget

The best car, when it comes to price, depends mainly on your income and credit. You really want to spend just 8% of your income each month on your loan payment. For a resident of Arkansas making $2,843 per month, the city average, this would be $227.

Exceptional Credit Fair Credit Bad Credit
Monthly Income $2,843 $2,843 $2,843
Car Payment $227 $227 $227
Rate 3.50% 7.00% 11.00%
Years 5 5 5
Down Payment $3,126 $2,872 $2,615
Amount Borrowed $12,503 $11,487 $10,461
Interest Paid $1,144 $2,160 $3,186
Total with Interest $16,773 $16,519 $16,263
Sticker Price $15,629 $14,359 $13,077