Auto Loans in Elkhart (IN)

If you want an auto loan in Elkhart, it’s wise to work with experts like us. We have access to a diverse network of lenders and dealers, and we are experts in matching you to the lender that wants your business most. We match you with a lending professional who can help you line up the car loan necessary for the car you want.

Vehicle Finance Rates in Elkhart

Can’t wait to learn what your rate of interest will be? For starters, you should know your credit score. This is the most significant variable. We can’t calculate what your interest rate will be here, but we can provide various estimations.

Credit Rating Low APR High APR
Excellent Credit 3.5% 6.5%
Fair Credit 4.5% 8.5%
Subprime Credit 6.5% 17%
Horrible Credit 14.5% 22.5%

Bear in mind these are estimations. It’s impossible to approximate your rate of interest without information such as your credit score and income. Take the opportunity to apply online, which will help you find out what rates local Elkhart dealers and lenders are willing to offer you.

Financing a Used Vehicle in Elkhart

In this day and age, automobiles can go tens of thousands of miles before running into issues, meaning a used vehicle is not all that much of a problem. Some individuals dismiss preowned cars for having steeper loan rates, but remember that they will cost less up front and over time. If you are upside-down on a preowned car or truck, it typically won’t be for as long. It is wise to hire an auto mechanic to take a look at the vehicle before buying it, or consider a used car that has passed a manufacturer inspection, meaning a certified preowned car or truck.

Elkhart Bad Credit Car Loans

Don't let credit cost you.
Don’t let bad credit cost you.

Bad credit has several disadvantages:

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

Far too many shoppers think they have to purchase from a buy here pay here car dealership in Elkhart, due to a bankruptcy or repossession, but this isn’t the best option. Luckily, we are dedicated to serving consumers with credit problems of all kinds, getting them the loans they need.

Here is some good news: a car loan, if paid as agreed, can improve your credit score in as little as a year. In fact, after 12 months or so of good payment history you might qualify to refinance at a more affordable APR. The most important thing is making your payments on time. It helps a lot to keep your payment low. Commit 8% of your monthly income, that’s it, for your car payment. For residents of Elkhart who make $2,586 per month, this would be $207.

Buy Here Pay Here Financing in Elkhart, Indiana

In house financing, better known as buy here pay here financing, has boomed in the years after the downturn, largely due to the fact that so many people’s credit ratings were impacted by the housing market and slow economy. Yes, they do not pull your credit, which means bad credit ought not be a hindrance, but you really pay for this down the road. You will discover that preowned vehicles are the only thing available, and these are not no money down car deals. In most cases, the down payment matches what the dealer had to pay for the vehicle, and you could find yourself paying thousands over the long run through excessive rates. Even worse, these car lots almost never report to the credit reporting agencies, and that means you could make all of your payments when they’re due without any boost to your FICO score.

Elkhart Income and Finances

  • Per-Year Income: $31,036
  • Monthly Income: $31,036
  • Optimal Monthly Payment: $207 (8% of monthly income)

Financing a Car at $207 per Month

Overall, the ideal car loan includes a down payment of 20%, car payment of 8% of monthly income, and a repayment term of 60 months or less. With an income of $2,586 per month, let’s consider the amount you could spend given your credit.

Prime Credit Okay Credit Poor Credit
Monthly Income $2,586 $2,586 $2,586
Payment Amount $207 $207 $207
Loan Rate 3.30% 6.50% 10.50%
Term 5 Years 5 Years 5 Years
Sticker Price $14,285 $13,217 $12,031
Money Down $2,857 $2,643 $2,406
Amount Borrowed $11,428 $10,573 $9,625
Interest Paid $984 $1,839 $2,788
Total Investment $15,270 $15,056 $14,819

Live in nearby South Bend? We offer our services in these areas as well.