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Auto Loans in Tyler (TX)

Lots of consumers in Tyler and across Texas think that credit problems will keep them from securing a car loan. The crucial thing is to find a lender willing to approve your credit. We work with a vast network of dealers and lenders, and we are dedicated to connecting you with the lender who suits you best. We match you with a credit expert who’ll guide you through the process.

Car Loan Tyler TX

Tyler Car Dealerships for Bad Credit

Car dealers in Tyler that offer loans directly are termed in-house financing, tote the note, or buy here pay here car lots. You are better off finding a car dealership that can finance your bad credit through an established lender. Since you’re a higher-risk borrower, expect more expensive interest rates and higher down payments, together with more exacting lending terms. Having said that, the rates and terms are far better than you would be offered at a buy here pay here lot. At Motive Auto Finance, we work with many of these dealerships, and they want to get you the car you want. Go here to apply online.

How to Minimize Your Tyler Rates of Interest

Financing your car at the most affordable rate of interest you can–it’s of utmost importance.

Truly, a lesser interest rate could save you hundreds of dollars, as you can tell from the chart below.

Good Credit Fair Credit Bad Credit
Amount Borrowed $15,534 $15,534 $15,534
Interest Rate 3.50% APR 7.00% APR 11.00% APR
Monthly Payment $283 $308 $338
Interest Owed $1,421 $2,922 $4,731

As is obvious, getting approved at the cheapest rate your credit allows couldn’t be more important. Let’s take a look at several techniques at your disposal.

  • Credit History: Check your credit report online, then challenge any inaccuracies that show up.
  • Down Payment: Offer 20% down on your new car or truck. This will bring down the risk for the lender, bringing about a more affordable rate.
  • Debt to Income (DTI): Lenders like you to have minimal existing debt, so paying off as much as you can may be beneficial.
  • Length of Loan: Longer loans come with less expensive monthly installments, but shorter ones come with better rates.
  • Vehicle Type: It is significantly cheaper to finance a new or almost new vehicle–though used vehicles may cost less in terms of purchase price.

Buy Here Pay Here Auto Loans in Tyler, Texas

When you’ve got severe credit problems on account of issues like bankruptcy or foreclosure, buy here pay here financing may seem like a good idea. These types of dealers approve funding in-house, unlike traditional dealerships which utilize one of their affiliated lenders, and they are more focused on your job than your credit. Sadly, you should be prepared for exorbitant loan rates, large down payments, and somewhat battered vehicles that are steeply-priced. As if that weren’t enough of an issue, these dealers rarely report back to the credit agencies, and that means you could make all of your payments on time without making improvements to your FICO score.

Choosing a Vehicle

Be careful not to buy a car that strains your finances. Just 8% of your monthly earnings should be allocated to your car payment. For the Tyler consumer earning $1,726 a month, the city average, this would be $138.

Great Credit Fair Credit Bad Credit
Car Payment $138 $138 $138
APR 3.50% 7.00% 11.00%
Term 60 Months 60 Months 60 Months
Down Payment $1,898 $1,743 $1,588
Loan Amount $7,590 $6,973 $6,351
Total Interest $695 $1,311 $1,934
Price with Interest $10,182 $10,028 $9,872
Vehicle Price $9,488 $8,717 $7,938

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