Auto Loans in Portage (IN)

Looking for a new or preowned car or truck? Then there’s a good chance you need a car loan. Instead of waiting until you’re in the dealer’s F&I office, we allow you to line up financing in advance. It truly is tough to find a more convenient way to purchase your next car.

New Vehicle Financing in Portage

Are you looking to get an auto loan for a brand new car? New cars lose value almost immediately, so you may wind up owing more on the car than it is worth. For this reason, lending companies ordinarily require a 20% down payment, versus 10% for a used car. On the flip side, interest rates for new cars are lower, and if you’ve got excellent credit, you may be able to get a no down payment car loan. If you’re undecided, an automotive finance specialist will help you determine whether a new our preowned vehicle would fit you best.

Auto Loans for Used Cars in Portage

Used vehicles, would you believe, offer substantial advantages over new ones. The loan rates for preowned autos are moderately more expensive, but other advantages, such as a lower purchase price and less extreme rate of depreciation, more than compensate for these higher rates. For anyone who is wary of maintenance, make sure you purchase a a vehicle that has low miles and solid ratings when it comes to dependability. In the end, a preowned car will give you greater value for your money.

Buying a Car with Bad Credit in Portage

When you’ve got poor credit, having your auto loan signed off by a bank often isn’t an option. There’s good news, though: there are lenders and dealerships in Portage that have experience serving people who have credit problems.

We have the solution. At Hoosier Auto Finance, we serve people on every end of the credit spectrum, getting them approved for the loans they need.

Getting financed, not choosing a new car or truck, is the first priority at any dealership that finances bad credit. Car dealerships have been known to charge more expensive rates than they have to, be sure you inquire about the rate quoted by the lender often called the buy rate. Ideally, your monthly payment should be just 5-8% of your monthly income. As an example, a typical Portage consumer who earns $4,002 every month, the average, should plan to commit just $200 to $320.

Buy Here Pay Here Financing in Portage, IN

The BHPH industry continues to grow, mainly because so many people’s credit ratings were impacted by the economic crisis. As a rule, dealer financing is indirect, in that dealers go through off-site banks and lenders to provide the loans. In contrast, BHPH dealers don’t. They determine who gets financed on-site, typically with no credit check. Disadvantages include:

  • Ridiculous Rates of Interest
  • Massive Down Payments
  • Overpriced Autos
  • GPS Tracking Devices

Is strengthening your credit a concern for you? Then you are better off applying through us, seeing as BHPH dealerships won’t aid you in increasing your credit.

Loan Pre-approvals for Portage Residents

The size loan you’ll qualify to finance will be based off of your income and credit. As an example, take a look at these figures based off of an income of $4,002 per month, the average in Portage.

Credit History Multiplier Loan
Good Credit 10 $40,020
Fair Credit 9 $36,018
Slow Credit 8 $32,016
Bad Credit 7 $28,014
Really Bad Credit 6 $24,012

Don’t finance a more expensive car than you should, simply because you are able to. Consider this chart, which shows what price car you can get financed based on your credit rating, along with an income of $4,002 on a monthly basis, 60 month term, and a down payment of 20%.

Great Credit Okay Credit Bad Credit
Monthly Payment $320 $320 $320
Interest Rate 3.30% 6.50% 10.50%
Sticker Price $22,108 $20,454 $18,619
Money Down $4,422 $4,091 $3,724
Interest Paid $1,523 $2,847 $4,314
Total with Interest $23,631 $23,300 $22,933