Indianapolis is well-known as a motorsports destination, but we can help you find something a little more practical than an Indy or stock car. Of course, you probably are going to need an auto loan to complete your purchase. Our industry partnerships are unparalleled, and we specialize in getting you financed by the dealer that wants your business most. You’ll have a committed financing expert to address your questions and set up your loan. You could be on your way to a race at the Brickyard before you know it!
Financing a New Car in Indianapolis
Many consumers would prefer to purchase a new car rather than a pre-owned one because of fewer maintenance issues and, in many cases, lower monthly payments owing to lengthy financing options. However, there are potential problems you should be aware of.
- They have bigger price tags.
- They lose 35% of their value in the first year.
- They call for much bigger down payments to make up for depreciation.
Because new cars are less vulnerable to maintenance issues, however, some lending companies are more inclined to finance them for borrowers with bad credit.
Financing a Used Car in Indianapolis
Nowadays, cars can be driven so many miles that a preowned vehicle is seldom an issue, especially if it is only a couple of years old. Did you know that a two year old car typically costs half as much as it did new? Obviously, there are some great deals to find on the used market.
Used car loans are known for quicker repayment periods. This typically means less interest charged, even when you’ve got a less affordable rate of interest. For anyone who is worried about repairs and maintenance, make sure to finance a late model vehicle with exceptional ratings when it comes to reliability. It is advisable to have the vehicle checked out by a mechanic prior to purchase, or consider purchasing a vehicle from your preferred manufacturer’s certified preowned program.
Indianapolis Bad Credit Car Loans
Banks typically fund loans only for people with good to excellent credit. That is, scores of 700 at least. With good reason, you don’t want to spend your time trying to find a bank or finance company in Indianapolis that will work with credit scores that aren’t perfect. We have the solution. At Hoosier Auto Finance, we serve customers all across the credit spectrum, getting them approved for the loans they need.
Car and truck loans can definitely help you re-establish your credit ratings. However, it’s necessary to make each of the payments and don’t miss any. Just make sure to never miss a payment, as it can reduce your score substantially. Be sure to choose a reasonably priced monthly payment. Typically no more than 5-8% of your monthly income is reasonable, or $120 to $192 if you get paid $2,394, the average in Indianapolis.
Indianapolis Buy Here Pay Here Financing
Many people go to buy here pay here dealers, under the impression that they will only be able to get financed with no credit check. Rarely is this the case. Most of the time, dealer financing is sourced elsewhere, in that dealers go through banks and lenders with whom they have relationships to provide the loans, but BHPH dealers engage in direct lending. They provide financing themselves. You will find that preowned vehicles are the only models available, and dealers may require you to have an remote interlock placed in your vehicle. Repossession frequently occurs, and the interest rates are pretty ridiculous, they’re so excessive. If that weren’t a problem, these dealers don’t report to the credit agencies, so you could make every single payment punctually without boosting your credit score.
Buying a Vehicle in Indianapolis: How Much You Can Borrow
Maximum loan amounts depend on how much money you make, and how strong your credit scores are. Check out these numbers for the average Indianapolis resident who has a monthly income of $2,394.
|Credit History||Income Factor||Amount Borrowed|
|Temporary Bad Credit||8||$19,152|
In reality, it’s best to secure fewer funds than you’re pre-approved to finance.
Financing a Car with $192 Monthly Payment
How much you ought to invest in your new car is determined by several factors. These numbers are derived from payments of $192, which is 8% of the average consumer’s monthly income in Indianapolis, together with a 20% down payment and 5-year loan. Rates of interest are simply estimates.
|Exceptional Credit||Fair Credit||Subprime Credit|
Complete Your Finance Application
If you have less-than-perfect credit, don’t worry. We charge no application fees, and you could be pre-approved for financing before you know it.