We enable you to find the Oregon auto loan you need, regardless of your credit scores. Whether you’re looking for a used car or a new one, we can help you get behind the wheel after as little as a day. You can submit an application in just 3 minutes.
The Application Process
When you apply, your application enters our placement platform. We have an extensive network of lenders – including banks, credit unions, and car dealers – who utilize our system. They each have their own approval requirements, and we endeavor to match you with the one who fits you best. As soon as you apply, we will email your personal login to our approval center, where you can keep track of your progress each step of the way.
Because there are so many lending options in our system, our success rates are some of the highest in the business. Approval is largely dependent on income. For applicants with monthly pre-tax incomes of $1500 or more, our success rate is approximately 90%. The process often takes less than an hour; however, it can take up to 48 hours.
We do not sell your information to multiple lenders. We make your contact information available to only one dealer or lender. This makes for a much improved experience, because you won’t be bombarded by telephone calls or emails from companies competing for your business.
Your dealer or lender will telephone or email you directly. They will be able to provide all of the information you need:
- Interest Rate
- Loan Terms and Conditions
- Down Payment Requirement
- Vehicle Options and Inventory
It is important to note that our service is not for private party purchases or refinancing. If you would like to purchase a vehicle from a private seller, we are not the right option. Most of the companies with whom we work will require you to purchase your vehicle directly from a dealer – often a specific dealership.
Just click here to submit your application online.
OR Income and Credit Scores
In the state of Oregon, the average monthly income is $3,297. The average credit score is 686. The stronger your FICO score, the cheaper your interest rates.
Generally, Oregon car loan companies require that you make at least $1500 income per month. Also, your total monthly debt, inclusive of your new car payment, shouldn’t surpass fifty percent of your earnings. This is known as your debt-to-income ratio, or DTI, and it’s an important factor for loan officers to consider. They do want to lend you more money if you’re already strapped with debts. After all, if you default on your payments, it isn’t a good outcome for either them or you. For consumers who live in Oregon, a 50% DTI translates to $1,649 in monthly debt payments, on average.
Avoiding Negative Equity
Negative equity is the state of owing more for an asset than it’s worth. Colloquially, this is known as being “upside down” or “underwater,” and it’s a very uncomfortable place to be. Basically, it means you cannot sell the asset – in this case a vehicle – and pay off the loan.
Cars are especially vulnerable to negative equity, because they have very steep depreciation rates. We try to advise our customers on ways to avoid such a state of affairs. Most of these strategies start now – before you’ve been approved to finance a vehicle. Firstly, you can provide a co-signer, which – if your own credit is a bit subpar – will often result in a lower rate of interest. Secondly, you can provide a handsome down payment – one-fifth of the vehicle’s worth (20%) is optimal. Lastly, you can apply smart budgeting techniques.
Smart Budgeting for Your New Car
It is best to invest only 18 to 20% of your regular monthly wages for things like your:
- Installment Payments
- Upkeep
- Gas
For your typical Oregon car owner, this means $593 to $659 per month. Spending more than 18-20% will endanger your finances. Additionally, you’ll want to go with a reasonably priced car with great gas mileage. More often than not, securing a used car auto loan in Oregon is best. Used cars are less costly to buy and to insure. Plus, they lose value a lot less quickly than brand new autos. This is especially important if you need to finance a bad credit auto loan (more on this here). When you combine high interest rates with steep depreciation, you could quickly find yourself trapped in a negative equity situation. Obviously, this is a bad situation, because you can’t “get out” of the car without losing a lot of money. However, if you apply the strategies we’ve discussed above, you’ll be well on your way to financing a vehicle that’s right for your budget.
