Texas Auto LoansBuying a new or used car in Texas often requires the consumer to obtain an auto loan. Auto loans are used when the consumer does not have enough cash to purchase the vehicle outright. While many dealerships provide financing on new and used vehicles, without very good credit the loan will likely be at higher interest rates than you can obtain through your bank or credit union. 4dmv.com has compiled this guide to help you with the process of obtaining an automobile loan.
Auto calculators are used by consumers to ensure that they do not get in over their heads. Experts suggest that you should not spend more than 20% of your monthly income on an auto payment. Auto calculators give you the advantage of determining what your monthly loan payments will be. 4dmv.com‘s auto calculator is easy to use. Simply insert the purchase price of the vehicle and the length of the loan as well as the interest rate on the loan and we will estimate what your monthly payments will be. .
When purchasing a new car you will need an understanding of the terms involved. Auto terms deal with important aspects of an auto loan and to be well informed and make the proper decision it is essential that you understand the meaning of the auto terms. The following auto terminology is below and 4dmv.com brings you an easy to understand definition for each:
- Down Payment: Down payment refers to the amount of money you put towards the purchase of the car. The down payment is not part of your monthly payments but helps to decrease your monthly payments by bringing down the overall cost of the vehicle. The larger your down payment the lower your monthly payments.
- Term Length: Term length refers to the length that the vehicle will be financed. The typical length of an auto loan is 24 to 48 months. For new cars car loans may have the option of a longer term length, however, for used cars the term length normally isn’t’ beyond 48 months.
- Trade-Ins: Trade-in refers to trading you current owned vehicles. Trade-ins will apply towards your down payment. Remember however, that often times you do not get as high of a selling value for your vehicle as you would through a dealer as you would through selling the car yourself.
- Upside Down: Upside down refers to owing more than your car is worth. Because a new car depreciates a great deal its first year, this is a common situation among many car owners. One way to avoid an upside-down situation is through a large down payment.
- Amortization: Amortization refers to paying for a debt through installment payments. Amortization tables show the purchaser the principal and the interest you will pay each month through the life of the loan and the balance remaining on your loan.
4dmv.com brings you specific information on auto loan refinancing in Texas through our special Refinancing Section. We will help you to understand the specific terms and the information that you need to know to make the best decision in refinancing your auto loan.
Bad Credit Texas Loans
Unfortunately bad credit affects our ability to obtain a loan. Lenders look at a person’s credit score in order to judge their responsibility level and credibility. The good news for those with a low credit score, there are bad credit lenders that will help you to secure your loan. Considering repairing your credit score prior to the purchase of your new vehicle is something that you should consider as you will be offered a loan with a much lower interest rate.