Used Cars and Auto Loan Rates in Illinois

Auto Financing Rates in Illinois

Although Illinois has an extremely low interest rate cap - 9% - for banks headquartered in the state, finance companies and national lenders outside of Illinois can charge higher interest rates. Used car loans in your area, for example, may have rates as high as in the 20% range.

At first glance, you may consider this a disadvantage for people with bad credit in Illinois. By allowing pre-owned dealers to charge a higher interest rate, however, more people are able to qualify for financing. A higher rate ceiling also means that more lenders are willing to loan money in your area than in other cities.

More lenders equates to more competition. In the competitive Illinois area lending market, most people are able to qualify for an auto loan to buy a car, regardless of past credit, at a competitive interest rate.

If lenders were not allowed to charge the higher rates, the only alternative for car buyers with credit problems in the metropolitan area would be to buy a car from a local Illini dealerships or buy here pay here car lot. The typical vehicle purchased at a buy and pay here lot is 5 to 10 years old, has higher mileage, and has a price range of $3000 to $8000.

The AutoNet Financial network of dealerships includes new car, rent to own, and used car dealers around Illinois. Each of the car dealers in our network has the vehicle inventory and lending resources to help nearly any special auto finance loan situation.

To find the perfect bad credit car loan, apply online today!