Auto Loans in Columbus (IN)

Have you been considering getting pre-approved for financing? You really should, as the benefits are extensive:

  • Much less time on the dealer lot.
  • Likelihood of a reduced interest rate.
  • Better negotiating power.

We do business with a vast network of dealers and lenders, and we have finance professionals standing by, expecting your application. In most cases, we’re able to position applicants with an appropriate lender or dealer in real time.

New Car Financing in Columbus

New cars and trucks cost a lot, and they depreciate at an incredible rate. That’s why they aren’t typically a good idea unless you are a certain type of borrower. You have 20% down payment either in cash or trade, and you aren’t considering getting rid of your car before you’ve paid it off. If you get tired of your car on a fairly regular basis, think about leasing a car.

Used Vehicle Financing in Columbus

Preowned autos are known to offer several different important benefits:

  • Cheaper out the door cost compared to a comparable new vehicle.
  • Less expensive insurance premiums.
  • Lower risk of being upside down.

Some people disregard used cars for having more costly loan rates, but keep in mind that they cost less at signing and over time. If you’re anxious about maintenance, be sure to get a late model vehicle with great reliability. Below, we’ve compared new and used auto loans in Columbus, Indiana. These numbers rely on these assumptions:

  • New price of $25,560.
  • Used vehicle is two years old.
  • Prime credit score.
  • Simple Interest.
New Car Used Car
Price $25,560 $12,780
Down Payment $5,112 $1,278
Loan Rate 5.00% 7.50%
Length 60 months 48 months
Monthly Payment $385.88 $278.11
Interest $2,705 $1,847
Total Paid $28,265 $14,627

Bad Credit Car Loans in Columbus

Bad credit has several disadvantages:

  • You have to pay more in interest.
  • You have to put more money down.
  • You have to go with a shorter term loan.

Far too many consumers believe they have to purchase from one of the buy here pay here dealers in Columbus, because of bankruptcy or other issues of this nature, but chances are you can get a car loan at a lower rate from a more trustworthy company.

Through us, you can contact an automotive lending expert from a lender or dealer in your area who wants to work with your credit.

Car loans can without a doubt raise your FICO score. But needless to say, you must make each payment on time. At the same time, missing one payment can hurt your score significantly. Make sure that you opt for a reasonably priced monthly payment. Typically no more than 5-8% of your monthly income is recommended, or $128 to $204 if you get paid $2,556, the average in Columbus.

Buy Here Pay Here Financing in Columbus, IN

For people who have experienced bankruptcy or debt settlement, a buy here pay here dealer could very well appear to be a good plan. Dealers like these will finance practically anybody, no matter their credit, but there are disadvantages.

Sadly, you will be faced with inflated loan rates, huge down payments, and vehicles that are too expensive for their mileage and condition. If strengthening your credit score is important to you, and it should be, you should apply online through us, as BHPH dealerships won’t assist you in re-establishing your credit.

Loan Pre-approvals for Columbus Residents

Have a look at just how much you can borrow given a variety of credit scores. Check out these amounts based off of an income of $2,556 per month, which is the average in Columbus.

Credit History Income Factor Loan Amount
Excellent Credit 10 $25,560
Fair Credit 9 $23,004
Temporary Bad Credit 8 $20,448
Bad Credit 7 $17,892
Very Bad Credit 6 $15,336

It’s best if you finance less than you can. This will keep your expenses low. To sum it up, an ideal auto loan features a down payment of 20%, car payment of 5-8% of monthly income, and term length of 5 years or less. Provided an income of $2,556 monthly, let’s consider how much you could spend based on your credit.

Good Credit Decent Credit Bad Credit
Car Payment $204 $204 $204
Rate 3.30% 6.50% 10.50%
Months 60 60 60
Car Price $14,120 $13,063 $11,892
Money Down $2,824 $2,613 $2,378
Loan Amount $11,296 $10,451 $9,513
Total Interest $973 $1,818 $2,755
Total Paid $15,093 $14,881 $14,647