Have you thought about getting your car loan pre-approved? You should, because it makes shopping for a car a much easier process. We work with a wide network of dealers and lenders, and we are dedicated to placing your application with the lender who wants your business most. We put you in touch with a credit specialist who will work tirelessly to get you approved.
New and Used Car Loans in Martinsville
Brand new vehicles cost a lot, and they lose value at an incredible rate. This is why they aren’t typically the best idea unless you meet the following requirements.
- You don’t plan on selling the car before it is paid off.
- You’re able to have a significant down payment.
- You are willing to live with being upside down on your vehicle .
The average new car loan lasts more than 5 years, so if you want a new car on a fairly regular basis, think about leasing a car.
Used Car Financing in Martinsville
In order to reduce the effect of your purchase on your bank account, you ought to finance a used car. People have been known to discount used cars for having increased interest rates, but remember that they still don’t cost as much in upfront cash and in sum total. Not surprisingly, lenders won’t fund the purchase of that don’t meet certain standards:
- Mileage: at most 70,000 to 100,000 miles.
- Model Year: no more than 7 years old.
Here is a comparison of new and used car loans in Martinsville, Indiana. These numbers are based on these assumptions:
- New price of $38,200.
- Two year old used vehicle.
- Credit score of 690 to 720.
- Down payment of 20% for new car, 10% for used.
- Simple Interest.
|New Car||Used Car|
Considerations for People in Martinsville with Bad Credit
There are a few downsides to auto loans with bad credit:
- You will have to pay more in interest.
- You have to have a larger down payment.
- You have to stick with a shorter term loan.
Naturally, you don’t want to waste a lot of time seeking out a company in Martinsville that will work with your credit.
This is where we come into play. At Hoosier Auto Finance, we are known for serving clients on every end of the credit spectrum, helping them secure the loans they need.
If you have a good credit record, you spend nearly all your time at the dealership checking out vehicles. If you have bad credit, however, you will focus more on your interest rate, lending terms, and down payment. To get the lowest rate you possibly can, make certain you inquire about the buy rate. This is the rate offered by the lender before the dealership has tacked on extra points for sourcing the loan. For a balanced budget, your loan payment should constitute just 5-8% of your gross monthly income. By way of example, a resident of Martinsville who has an income of $3,820 per month, the average, should plan to shell out no greater than $191 to $306.
Martinsville Buy Here Pay Here Financing
The buy here pay here industry would like you to think that they are the only ones that will finance you. However, this is hardly ever the way it is. These dealerships provide financing on location, while traditional dealers farm this out to third-party lenders, and they will typically finance anyone.
Typically, higher-mileage vehicles are the only thing on the lot, and you may be required to pay weekly, in cash. Repossession is common, and the interest rates are simply silly, they’re so excessive. Worst of all, these dealerships very rarely report to the credit bureaus, which means you could make all of your payments as agreed without increasing your FICO score.
Loan Pre-approvals for Martinsville Residents
Maximum loan amounts depend on the amount of money you’re making, and how strong your credit scores are. These figures presume an income of $3,820 on a monthly basis, the average among Martinsville residents.
|Credit Rating||Income Factor||Amount Borrowed|
|Temporary Bad Credit||8||$30,560|
|Really Bad Credit||6||$22,920|
How much you can borrow, and how much is financially responsible, are not the same thing. Overall, the ideal funding arrangement is as follows: down payment of 20%, car payment of 8% of monthly income, and a repayment term of 5 years or less. With an income of $3,820 each month, let’s see how much car you could buy given your credit.
|Great Credit||Fair Credit||Subprime Credit|
|Price with Interest||$22,556||$22,241||$21,890|