Bad Credit Auto Loans in Canton (MS)

Interested in buying a new or preowned vehicle? Then it’s quite possible you need a car loan to complete your purchase. Our company assists consumers in Canton and all over the state of Mississippi, helping them get approved online for financing. Let us match you with a finance expert who can help you line up the auto loan needed for the vehicle you prefer.

Car Loan Rates in Canton

Your annual percentage rate will depend on a variety of factors, the most substantial of which are your credit history, your lender, and the type of loan. Here we have a few APR estimations for Canton.

Credit History New APR Preowned APR
Superb Credit 3.7% 4.1%
Fair Credit 5.1% 5.6%
Subprime Credit 7.2% 7.7%
Bad Credit 12% 11.5%
Really Bad Credit 19.1% 20.2%

These aren’t promoted rates, only averages. Loan providers need more information in order to quote you a rate of interest, so be sure to apply online.

Auto Loans for Used Cars in Canton

In order to lessen negative equity, get a loan for a used car. Some individuals dismiss preowned cars for having less affordable loan rates, but remember that they are less expensive up front and in the long run. If you are in over your head on a used car, it will typically be for a shorter length of time. Below, we’ve placed side by side the costs of new and used car loans in Canton, Mississippi. These estimations are based on the following assumptions:

  • New car costs $24,670.
  • Three year old used vehicle.
  • Credit score of 690 to 720.
  • Down payment of 20% for new car, 10% for used.
  • Fixed APR.
New Car Used Car
Price $24,670 $12,335
Down Payment $4,934 $1,234
APR 5.00% 7.50%
Years 5 4
Monthly Payment $372.44 $268.42
Total Interest $2,611 $1,783
Total Paid $27,281 $14,118

Canton Auto Loans with Bad Credit

Borrowers who have good credit benefit from great annual percentage rates and advantageous terms. Unfortunately, many folks have struggled with credit problems, many of which were brought on by the economic crisis. Obviously, you don’t want to waste time struggling to find a company in Canton that will work with bad credit borrowers.

This is where we come in. At Mississippi Auto Finance, we serve customers all across the credit spectrum, getting them approved for the loans they need.

As you may know, financing a car can raise your credit score by leaps and bounds.

To avert missed payments, a lot of banks and lenders make it simple to automate your payments. Determining an appropriate payment amount is essential. As an example, let’s pretend you have an income of $2,467 per month, the average for Canton residents.

  • Low Payment: $123 (5%)
  • Intermediate Payment: $197 (8%)
  • Maximum Payment: $247 (10%)

Buy Here Pay Here Dealerships in Canton, MS

Most people in Canton turn to buy here pay here dealerships, believing that they will only be able to finance a car without a credit check. Not true. Dealers like these will finance almost anyone, regardless of their credit, but there are disadvantages.

You will see that used autos are the only ones for sale, and these are not zero down car loans. Quite often, the down payment matches the vehicle’s value at dealer auction. Rates in excess of 20% APR are common. There’s a reason that these dealerships have a lousy track record. We want to place you with a reputable dealer who can put you in the driver’s seat, even if you have bad credit.

Loan Amounts for Canton Residents

The amount you will qualify to finance is based off of your income bracket and credit tier. The following figures presume an income of $2,467 a month, which is the average in Canton.

Credit Income Factor Amount Borrowed
Good Credit 10 $24,670
Fair Credit 9 $22,203
Temporary Bad Credit 8 $19,736
Bad Credit 7 $17,269
Terrible Credit 6 $14,802

The amount you can borrow, and the amount is a good idea, are two separate things. Have a look at this chart, which shows you what price car is within your budget given your credit rating, with an income of $2,467 each month, 5 year loan, and a down payment of 20%.

Great Credit Okay Credit Subprime Credit
Monthly Installment $197 $197 $197
Rate 3.50% 7.00% 11.00%
Months 60 60 60
Vehicle Price $13,561 $12,459 $11,346
Money Down $2,712 $2,492 $2,269
Note Size $10,849 $9,967 $9,077
Interest Paid $993 $1,875 $2,764
Total Investment $14,554 $14,333 $14,111