Auto Loans in Gary (IN)

In the old days, you had no choice but to go from one lender in Gary to the next, searching for one who will accept your credit. At Hoosier Auto Finance, we have brought this process online. We make it easy to submit your application through our system. We will match you with a financing specialist who walk you step-by-step through the process. By the time you reach the dealership, you’ll have an appointment scheduled to choose the vehicle you want, and you’ll know you have the funds to afford it. Can you imagine a better way to buy your next car?

Auto Loans in Gary for New Vehicles

Lots of people would prefer to buy a new car instead of a used one because they want the coolest new car available. However, if your credit isn’t great, the quick loss of a new car’s resale value, in addition to high rates of interest, can result in negative equity, so a good down payment is a good idea. Nevertheless, new car dealers are keen to move vehicles off the lot, and you can often score an incredible deal on a new car, even if your credit isn’t ideal.

Preowned vehicles offer a number of substantial merits:

  • They are less costly to purchase.
  • The down payments are not as high.
  • They aren’t devalued as quickly.

The annual percentage rates for preowned cars and trucks are somewhat higher, but other advantages, such as a lower price and flatter rate of depreciation, more than make up for these increased rates. For anyone who is concerned about repairs and maintenance, make sure to purchase a late model vehicle with exceptional dependability. Below, we have put together some numbers that will help you decide if you should purchase a vehicle that’s new or used. These numbers rely on the following assumptions:

  • New car costs $21,300.
  • Two year old used vehicle.
  • Credit score of 690 to 720.
  • Fixed APR.
New Car Used Car
Price $21,300 $10,650
Down Payment $4,260 $1,065
Loan Rate 5.00% 7.50%
Years 5 4
Monthly Payment $321.57 $231.75
Interest $2,254 $1,539
Total Paid $23,554 $12,189

Auto Loans in Gary with Bad Credit

There are lots of different issues which can bring about a bad credit score: outstanding bills, foreclosure, bankruptcy, etc. While low credit scores can make it harder to finance the car you’d like, you aren’t devoid of options. You may have to pay a higher rate of interest and offer a larger down payment, but there are companies who cater to the “subprime” market. The rate you’ll have to pay will be dependent on a multitude of factors, but it’s safe to assume that a rate in excess of 10% APR is to be expected if your credit score is 620 or lower. Fortunately, through us you can contact an automotive finance expert from a dealer or lender in your zip code who wants to fund your loan.

What’s That on Your Credit Report?

Credit report inaccuracies have grown quite widespread. Have you made certain your credit hasn’t been subject to mistaken identity or human error? Commons errors include accounts listed as open which have been closed, or closed accounts that are labeled inappropriately. You may even find accounts or debts that you have never heard of. This is not uncommon, and could be the result of a mistaken identity or outright fraud.

Every year, you can check your credit free of charge at, in accordance with the FACT (Fair and Accurate Credit Transactions) Act, and make certain you are charged the rate of interest that’s as low as possible. If you do find any errors, you dispute through by mailing the bureau a letter. They are required by law to investigate such issues in a timely fashion.

Buy Here Pay Here Dealers in Gary, Indiana

Buy here pay here dealers ordinarily finance people with significant credit problems like bankruptcy or foreclosure of a home. Generally, dealer finance is sourced elsewhere, in that dealerships work with banks or credit unions to provide the loans, but buy here pay here dealers don’t. They provide funding themselves. Unfortunately, you should expect exorbitant interest rates, big down payments, and cars and trucks that are too expensive for their age and condition. As if that weren’t enough of an issue, these car lots don’t report back to the credit agencies, which means you could make all of your payments punctually without boosting your FICO score.

Gary Consumer Profile

  • Per-Year Income: $25,555
  • Income Per Month: $25,555
  • Ideal Car Payment: $107 to $213 (5-10% of monthly income)

Auto Financing in Gary for Various Credit Tiers

Check out this chart displaying what car you can afford with a payment of $170, 20% down payment, and 60 month term.

Great Credit Decent Credit Bad Credit
Monthly Installment $170 $170 $170
Interest Rate 3.30% 6.50% 10.50%
Vehicle Price $11,766 $10,886 $9,910
Down Payment $2,353 $2,177 $1,982
Loan $9,413 $8,709 $7,928
Total Interest $811 $1,515 $2,296
Price with Interest $12,577 $12,401 $12,206

Live in nearby Chicago? Illinois Auto Finance, friends of ours, can help you with your purchase.