Everything to Know about Auto Loan Rates

Everything To Know About Auto Loan Rates

How Much Down Payment for a Car with Bad Credit?

If you’re shopping for a used vehicle in Mesa but are struggling with credit, you may be wondering about what is the average down payment needed on a car with no credit. While securing a loan with bad credit can be slightly more involved, it’s not impossible, and being able to provide a large down payment can make a big difference. The finance team at Rocky’s Auto Credit has assembled car buying tips to guide you through how much down payment you’ll need and more.

The Average Down Payment on a Car with No Credit

The way car financing works for those in and around Phoenix who have bad credit is subprime lenders will require a down payment of 10% of the total loan amount or $1,000, whichever number is greater. This helps the bank or other financial institution ensure they are making a sound investment. That being said, if you can manage buying a car with bad credit but providing a larger down payment, you will likely be afforded better interest rates and lower monthly payments, helping you save money in the long run. While it’s always important to never overextend your budget, the best answer to “how much down payment for a car with bad credit” is as much as you can reasonably afford.

Value Your Trade, Meet Your Down Payment with Bad Credit

In addition to putting down a larger down payment, there are other ways to save money when buying a car with bad credit. One helpful solution is to lower the cost of your new car by trading in your old one, as trade-in allowances can be applied to down payments. At Rocky’s Auto Credit, we’re proud to offer “No Credit/Bad Credit Financing” financing even if you don’t have credit. We believe all drivers from Glendale, Tempe, and beyond deserve a safe, reliable vehicle regardless of credit history, and our team will work with you to find the best deal and solution for your needs. Buy here pay here arrangements work by allowing you to work directly with us as your lender, eliminating the need for bank approval.

Rocky’s Auto Credit Can Help Buyers with Bad Credit or No Credit

If you’re committed to buying a car with bad credit but with a large down payment, start the process today at Rocky’s Auto Credit by filling out our loan application. Once completed, our friendly finance team will reach out to get you on your way to driving home the car you’ve had your eye on. Contact us with any questions, we look forward to working with you!

What is a Good Interest Rate for a Car Loan?

So, what is the average interest rate on a car loan, and what is considered a good rate? The expert finance team at Rocky’s Auto Credit is here to help drivers from Phoenix to Glendale avoid overpaying on interest rates for car loans. Read on for a better understanding of the right interest rate for a car loan, keeping your credit score in mind. Rocky’s Auto Credit has created an easy-to-reference chart to help Mesa-area drivers get the best rate. Learn more about exactly what is a good car loan rate. From there, we can approve you for financing in no time!

Apply for Financing at Rocky’s Auto Credit

Here at Rocky’s Auto Credit, it is ourmission to help Mesa area drivers with a hassle-free financing process. Get behind the wheel of your dream used vehicle at a reasonable rate. Contact us to compare rates today or to get more car-buying tips, like what MSRP means.

What is a Simple Interest Loan?

If you’re like a lot of our Phoenix customers who are wanting to finance the purchase of a used car, you likely have some questions. For example, what is a simple interest loan? How does a simple interest auto loan work? We’ll talk about that below, and even explain how to calculate a simple interest rate on a loan.

How Does a Simple Interest Loan Work?

So, what is a simple interest loan? How does a simple interest loan work? With a simple interest loan, you only pay interest on the principal. That’s different from a compound interest loan, in which you pay interest, not only on the principal, but also on the interest from the previous period. As you can see, simple interest loans cost less in the long run. Fortunately, simple interest loans are often available for auto financing. Our Finance Department can walk you through your options.

How to Calculate Simple Interest Rate on a Loan

We’ve taken the confusion away from car loans for lots of Glendale customers just like you. We love to keep our customers informed. So, here’s how interest on a simple interest loan is calculated:

How to Calculate Simple Interest Rate on a Loan

  • Multiply your principal by your annual interest rate
  • Divide that answer by 365 (number of days in a year)
  • The result is your daily interest rate

Example (What is a simple interest loan rate on a $10,000 loan with an annual interest rate of three percent?):

  • Principal = $10,000; Annual Interest Rate = 3%
  • $10,000 x .03 = $300 (annual interest)
  • $300/365 = $0.82 (daily simple interest)

Ways to Save With a Simple Interest Loan

Obviously, you pay less interest over time with a simple interest loan as opposed to a compound interest loan. But you can also save with a simple interest loan by reducing your principal. You can do that in the following ways:

  • Pay more than the minimum monthly payment
  • Making extra payments in addition to your regular monthly payment
  • Paying off the loan early (make sure your loan has no penalties for early repayment)

Talk to the Finance Department at Rocky’s Auto Credit of Mesa

Our friendly finance managers are happy to explain the ins and outs of auto financing and simple interest loans to you. We make it easy to buy a car. You can even apply for financing online. We’re just a short drive away from Phoenix, Mesa, Glendale or Tempe, so drop by or contact us today!


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We offer used cars for sale to people that are credit impaired, have low income, or no credit at all. Our loan application process is quick, free, and completely secure with no obligation!


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