Purchasing a new car is a choice you have to live with for many years down the road, so it’s important to secure the least expensive annual percentage rate available for your credit. Our network of lending companies and dealers is unequalled, and we have specialists hoping to finance your purchase. You will be walked step-by-step through the process by a lending professional in Valparaiso.
The Old New vs Used Debate
Here at Hoosier Auto Finance, we help clients finance both used and new vehicles. Choosing what’s right for you, however, is not always an easy decision. New cars are largely worry-free, they smell good, and they are just plain nice. However, they are significantly more expensive than their preowned counterparts, and they lose value rapidly. A one year old car typically costs just 65% of what it cost new.
For this reason, a lot of clever buyers are steering clear of new cars in the post-recession era, favoring used ones instead. The shorter financing terms typical of used car financing typically mean less interest accrued, even if you have a more expensive APR rate. Many loan companies, however, will require that you buy from a dealership instead of a private party. If you want the best of both worlds, consider getting a used vehicle that has been checked and certified by the manufacturer itself.
Valparaiso Bad Credit Car Loans
Maybe you have less-than-perfect credit as a result of issues like outstanding debts, unemployment, divorce, or bankruptcy? Choosing the best loan provider in Valparaiso who approves people with bad credit is vital. After all, you don’t want to have your credit denied or be charged an outrageous rate of interest.
When you submit your application through Hoosier Auto Finance, we work to find you a lender or dealer within driving distance who is willing to accept you as a client.
If you have favorable credit, your first priority will be to see what vehicles are for sale. However, with bad credit, you will take more time lining up your financing, including your interest rate, lending terms, and down payment. If you apply through us, you can ordinarily hammer out the important points of your loan with a finance expert, then plan a time for you to visit the dealership and select your vehicle. In a perfect world, your car payment should be equal to just 5-8% of your monthly income. For example, a resident of Valparaiso who has a gross income of $3,103 every month, the average, should plan to dedicate no greater than $155 to $248.
Buy Here Pay Here Auto Loans in Valparaiso, Indiana
When you’ve got major credit problems on account of bankruptcy or debt settlement, a buy here pay here dealer might seem like a smart move. Normally, dealer finance is indirect, as dealers work with off-site banks and lenders to provide the loans, but buy here pay here dealers don’t. They provide financing independently.
Alas, you should be prepared for high interest rates, big down payments, and vehicles that cost too much given their mileage and condition. If that weren’t a problem, these dealerships almost never report to the credit reporting agencies, which means you could make each and every payment as agreed with no boost to your credit score.
Determining Interest Rates in Valparaiso
As you may know, interest rate plays a huge role when you finance a car. Rates are contingent upon many different factors. Your history of credit is the most crucial. The higher your credit, the cheaper your interest rate. Below we’ve provided a few APR approximations for Valparaiso.
|Credit||New APR||Used APR|
These figures are simply to provide you with an inkling of prospective rates. To get a definitive estimate of your interest rate, it is advisable to consult an auto finance professional.
Valparaiso Consumer Profile
Valparaiso has a stronger per-capita income than the vast majority of Indiana cities. This makes it much easier for the average consumer to get approved for financing. Most lenders are looking for an income of just $1500 per month.
- Income Per Year: $37,231
- Monthly Income: $37,231
- Typical Car Payment: $341
- Suggested Monthly Payment: $248 (8% of monthly income)
How Much Car You Can Afford at $248 a Month
Take a look at this table, which shows what price car you can afford given your credit score, provided an income of $3,103 a month, 60 month term, and a down payment of 20%.
|Good Credit||Fair Credit||Bad Credit|
|Price with Interest||$18,323||$18,066||$17,782|
Talk to an Auto Finance Manager in Valparaiso!
If you have a low credit score, don’t worry. We charge no application fees, and you could be buying your new vehicle in no time.