Auto Loans in Muncie (IN)

There are plenty of ways to secure an auto loan in Muncie, but few if any firms have improved credit acceptance like we have. We serve buyers in Muncie and all over the state of Indiana, helping them get approved online for financing. You can expect to be walked step by step through the lending process by a finance professional based where you live.

New and Used Car Loans for Muncie Consumers

There are benefits to brand new cars:

  • Decreased loan rates.
  • More discounts available.
  • Decreased repairs and maintenance costs.
  • Long term financing available.

However, if you finance a new car, you should plan to keep it until it is fully paid off. Otherwise, you could end up owing the bank even after the vehicle has been traded in or sold. However, new car dealers will do nearly anything to to sell cars, and you can often secure a terrific package through the automaker’s own finance department, even if you don’t have stellar credit.

Used Car Financing in Muncie

A good number of smart consumers go with used cars instead of new ones. Why? For a number of reasons. There are more affordable to buy, more affordable to insure, and you’ll often pay less interest, even if your rate is higher, due to shorter repayment periods. A lot of lending companies, however, will require that you buy from a car dealership and not a private seller. Here is a comparison of new and used vehicle loans in Muncie, Indiana. These estimations rely on the following assumptions:

  • Used vehicle is two years old.
  • Good credit score.
  • Fixed APR.
New Car Used Car
Price $14,580 $7,290
Down Payment $2,916 $729
Interest Rate 5.00% 7.50%
Term 5 years 4 years
Monthly Payment $220.11 $158.64
Total Interest $1,543 $1,054
Total Paid $16,123 $8,344

Buying a Car with Bad Credit in Muncie

Credit score is a critical variable when buying a car in Muncie. Has yours seen better days? Naturally, you don’t want to spend your time seeking out a lender or dealer in Muncie that works with bad credit borrowers. Through us, you can get in touch with an automotive lending professional from a dealer or lender in your area who is willing to get you in the driver’s seat.

An auto loan can indeed improve your credit score. That is, provided that you make each and every payment by the due date. To help prevent missed payments, investigate options such as automated payments. Determining the ideal payment amount is a must. As one example, let us suppose you earn $1,458 per month, the average for Muncie residents.

  • Low Payment: $73 (5%)
  • Intermediate Payment: $117 (8%)
  • Maximal Payment: $146 (10%)

Auto Loans for Ball State Students and Faculty

As you probably know, Ball State University is the largest employer in the area, and many of its students–both undergrads and graduate students–will wind up coming to us with financing questions. The problem when financing a vehicle at this stage in life is twofold:

  • Lack of payment history and credit mix.
  • Lack of stable, sufficient income.

The credit issue can typically be overcome if you work with us, but the income factor is not easily overlooked. You need a verifiable income of $1500 per month. If do not have proof of income demonstrating at least this amount on a regular basis, your only real option is to have a parent, older sibling, or other trusted relative cosign your agreement.

Muncie Buy Here Pay Here Financing

In house financing, otherwise referred to as buy here pay here financing, continues to grow, largely because so many people’s credit ratings were impacted by the down economy. Most dealer financing is outsourced, in that dealers work with banks or credit unions to provide the loans. In contrast, buy here pay here dealers decide who gets financed on location, typically without a credit check.

The fact is, you can look forward to inflated annual percentage rates, big down payments, and well-used vehicles that are steeply-priced. Is boosting your credit a priority for you? If so, you are better off applying through us, as buy here pay here dealerships won’t assist you in improving your credit.

Loan Pre-approvals for Muncie Residents

The better your credit, the bigger amount you can borrow, which also goes for your income. We’ve included a chart depicting loan pre-approvals for people with an income of $1,458 a month, the average in Muncie.

Credit Income Factor Sum
Great Credit 10 $14,580
Average Credit 9 $13,122
Subprime Credit 8 $11,664
Poor Credit 7 $10,206
Very Bad Credit 6 $8,748

It’s best if you borrow less than you can. This will save yourself some income for unexpected expenses. The exact amount you ought to pay for a new car or truck depends on several variables. The numbers in the chart below are based upon payments of $117, which is 8% of the average consumer’s monthly income in Muncie, combined with a 20% down payment and 60 month loan. Rates of interest are approximated.

Exceptional Credit Fair Credit Poor Credit
Monthly Installment $117 $117 $117
Rate 3.30% 6.50% 10.50%
Years 5 5 5
Purchase Price $8,054 $7,452 $6,783
Down Payment $1,611 $1,490 $1,357
Borrowed Funds $6,443 $5,961 $5,427
Total Interest $555 $1,037 $1,572
Total Paid $8,609 $8,489 $8,355

Your New Car is Waiting

If you’ve got below-average credit, don’t fret. Apply online, and we’ll get you approved. It’s fast, simple, and secure.