If you’re in the market for a new car, there is a good chance you are going to need a car loan to complete your purchase. We help clients in Bloomington every day, helping them line up their financing from home. You’d be hard-pressed to find an easier way to buy a car in B-Town.
New and Used Auto Loans for Bloomington Consumers
When you’re in the market for a new car, you should do so providing the following:
- You don’t plan on swapping out the car before it is paid off.
- You are able to have a significant down payment.
- You are at ease with negative equity .
The average new car loan lasts more than 60 months, so if you get tired of your car on a fairly regular basis, you should consider leasing a car.
Financing a Preowned Vehicle in Bloomington
For a number of reasons, a car that’s two or three years old is a far better deal than a new one. Used autos are financed at higher APR rates, but down payments are much less than what they are for new cars and trucks that are similarly priced. Even if you’re in over your head on a used car, it typically won’t be for as long. Let’s look at a comparison of new and used vehicle loans in Bloomington, Indiana. These estimates rely on the following assumptions:
- 50% depreciation in first 24 months of ownership.
- Good credit score.
- Down payment of 20% for new car, 10% for used.
- Fixed APR.
|New Car||Used Car|
Bloomington Bad Credit Car Loans
If you’ve got less-than-perfect credit, having your auto loan financed by a bank normally isn’t an option. Many shoppers end up going to a buy here pay here car lot in Bloomington, on account of low credit scores, but it’s best to stay away from these car dealers. We can help. At Hoosier Auto Finance, we serve clients who have credit problems of all kinds, helping them secure the loans they need.
A major percentage of your credit score is calculated from your record of payments, and making payments on your new loan can help you in rebuilding your credit. Believe it or not, you may be able to refinance your vehicle after your score has risen to a new tier. Make sure to choose a budget friendly monthly payment. Typically no more than 5-8% of your monthly income is appropriate, or $67 to $106 if you bring in $1,331, the average in Bloomington.
Note to IU Bloomington Students
We do help students get approved for financing. However, you will in all likelihood need someone with good credit to cosign the loan. This is typically a parent. If you want to do it all on your own, you will need to be able to prove an income of at least $375 per week before taxes. It’s okay if this is from a part-time job, as long as you have the pay stubs or tax returns to back it up. Given your age, your rate of interest will probably be quite high, though paying off your loan as agreed should help you secure lower rates in the future.
Buy Here Pay Here Dealerships in Bloomington, Indiana
In house financing, also known as buy here pay here financing, continues to grow, mainly because so many people’s credit scores took hits on account of the housing market and slow economy. These car lots provide auto loans directly, unlike regular dealerships which farm this out to separate lenders, and they will typically finance everyone. Alas, you can expect high annual percentage rates, massive down payments, and somewhat battered vehicles that are overpriced. For this reason, these retailers have a bad reputation. Let us place you in the hands of a reputable dealer who can get you the funds you need, even if you’ve been through bankruptcy.
Buying a Car in Bloomington: The Amount Can You Borrow?
Have a look at what size loan you’ll be eligible to borrow given several levels of credit. The following figures presume an income of $1,331 each month, the average for people in Bloomington.
|Really Bad Credit||6||$7,986|
The truth is, it’s better to buy a less costly vehicle than you actually could based on your income and credit. Wondering how much car you really can afford? Check the chart below. The lending rates have been approximated, and the figures presuppose an annual income of $15,973, the average in Bloomington. Repayment term is 5 years.
|Exceptional Credit||Fair Credit||Poor Credit|
|Price with Interest||$7,859||$7,749||$7,627|
Ready to Get Approved?
We have dealers and lenders who are standing by to approve your credit. We will put you in touch with a finance consultant from a dealer or lender in Bloomington.