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GOBankingRates recently analyzed new and used vehicle loans in Texas.
Our study assumed consumers chose a five-year auto loan with a 20% down payment.
Based on those factors, heres what an auto loan willcost you in Texas.
However, that doesnt mean you cant secure an auto loan that fits your budget.
Here are a few ways to optimize the shopping process.
Check Your Credit Score
Before applying for an auto loan, check your credit score.
Lenders typically provide the best rates to people with a credit score that exceeds 700.
If your score falls below that, its worth looking into why.
If you have any outstanding collections or late payments, you should rectify those before applying for new credit.
While you cant change the past, paying off collections will reduce their impact on your score.
If you missed a payment, you’re able to talk with your creditor.
They may be willing to remove the report if you explain what happened.
Sometimes, financing from a traditional lender may be cheaper than a dealerships.
Some dealers may also offer you aneven better rateon their in-house financing, lowering your borrowing costs.
Methodology: For this study, GOBankingRates analyzed each U.S. state to find the average auto loan rates.
The monthly and total auto loan costs can both be calculated for all states and car types.
All data was collected on and is up to date as of Sept. 5, 2024.
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