Auto Loans in Anderson (IN)

Buying a car is a decision you have to live with for many years down the road, so it’s important to work with a lending professional to line up your financing agreement. We do business with a vast network of dealers and lenders, which means we can help applicants of every credit type and budget. You will enjoy the convenience of working with a dedicated finance specialist to answer your questions and set up your loan.

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New or Used, That’s the Question

There are some things to take into account when shopping for a new car, truck, or SUV. New cars come with lower loan rates and fewer maintenance issues than their preowned equivalents, and they can often be had with a low interest rate. But remember that almost all of the 0% financing offers you see online are on approved credit. Simply put, few individuals actually meet the requirements. Ultimately, it’s best to talk to an automobile financing specialist to establish if a new our preowned vehicle is the right choice.

Preowned cars are less expensive, that goes without saying, meaning they offer lower monthly payments and insurance rates. A lot of banks and finance companies, however, will only finance cars from actual dealerships, not from individual parties. To get the best of both worlds, consider getting a used vehicle that has been inspected and certified by the manufacturer itself.

Bad Credit Car Loans in Anderson, Indiana

Credit score is very important when buying a car in Anderson. Has yours had better days? Obviously, you don’t want to spend your time searching for a dealer or finance company in Anderson that works with credit scores of 620 and lower. That’s where we can help. At Hoosier Auto Finance, we are known for serving clients all across the credit spectrum, getting them the loans they need.

Getting your credit approved, not choosing your vehicle, is the first priority at car dealers that help people with bad credit. If you apply through us, you can ordinarily hammer out the main points of your finance contract ahead of time, then set up an appointment to visit the lot and buy your vehicle. Ideally, your loan payment should equate to just 5-8% of your gross income on a monthly basis. For instance, a resident of Anderson who makes $2,079 monthly, the average, should plan to allocate no greater than $104 to $166.

Anderson Buy Here Pay Here Financing

Buy here pay here car dealers typically deal with people who have severe credit problems such as:

  • Chapter 7 or 13 Bankruptcy
  • Property Foreclosure
  • Asset Repossession
  • Debt Settlement
  • Charge-offs

These dealers will finance just about anyone, no matter their credit, but there are problems with sort of financing.

Alas, you can look forward to inflated annual percentage rates, massive down payments, and well-used vehicles that are overpriced. There’s a reason that these dealerships don’t have a great reputation. Let us put you in touch with a reputable dealer who can get you in the car or truck you need, even if your credit is awful.

Buying a Car in Anderson: Loan Amounts

Most lenders consider your income and credit score to decide the maximum amount they’re willing to let you borrow. The following amounts use an income of $2,079 each month, which is typical of the average Anderson resident.

Credit Income Factor Loan
Good Credit 10 $20,790
Fair Credit 9 $18,711
Subprime Credit 8 $16,632
Poor Credit 7 $14,553
Very Bad Credit 6 $12,474

Auto Loans with $166 Monthly Payments

Truth be told, though, it’s a better idea to opt for a less expensive vehicle than you actually could based on your income and credit. A good sound rule of thumb is to allocate no more than 8% of your monthly income toward your payment. For the average citizen of Anderson, where the average monthly income is $2079, this is $166. Take a look at this table demonstrating what car you can afford with a payment per month of $166, 20% down payment, and 5-year term.

Great Credit Decent Credit Poor Credit
Monthly Income $2,079 $2,079 $2,079
Car Payment $166 $166 $166
Loan Rate 3.30% 6.50% 10.50%
Car Price $11,485 $10,625 $9,673
Down Payment $2,297 $2,125 $1,935
Borrowed Funds $9,188 $8,500 $7,738
Total Interest $791 $1,479 $2,241
Price with Interest $12,276 $12,104 $11,914

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If your credit score isn’t the best, you may need help getting financed. A finance specialist will lead you through the process, helping you get financed at a fair rate of interest.