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Auto Loans in Elkhart (IN)

A consumer’s credit score is a major factor for lenders granting car loans. The loan rates associated with bad credit car loans in Elkhart are dramatically more expensive than those for first-rate credit, and rates of acceptance are not nearly as high as they were in the pre-recession era. Not to worry. We believe that auto financing should not be so difficult for Elkhart residents, regardless of what their credit scores may be. Advantages we offer involve:

  • Leading-Edge Data-Matching Platform
  • Extensive Dealer Network
  • Detailed Buyer Instruction

Bad Credit Auto Financing Elkhart Indiana

Bad Credit Car Dealers in Elkhart, Indiana

You shouldn’t let credit prevent you from buying your next car. We work with dealerships in Elkhart that want to get you the loan you need, regardless of your credit history. In any bad credit lending scenario, there are certain things to be expected steeper rates of interest, larger down payments, and shorter length loans. On the other hand, it’s far better than being turned down by the big banks, and these dealers can help you repair your credit and perhaps even refinance your vehicle at a lesser rate. We have many such dealers in our network, and you can find one that wants to approve your credit by submitting your application.

Elkhart Auto Loan Rates: How to Reduce Them

Securing the cheapest rate of interest possible–it’s very important.

Take a look at what you’ll pay in interest with an APR of 3.50% versus 7.00% or 11.00%.

Good Credit Decent Credit Sub-prime Credit
Loan $23,274 $23,274 $23,274
Interest Rate 3.50% APR 7.00% APR 11.00% APR
Payment Per Month $423 $461 $506
Interest Owed $2,130 $4,377 $7,088

Fortunately, there are steps to take to decrease your rate of interest.

  • Credit Profile: Take steps to rectify any error you find on your credit report which could increase the APR rate at which you can get approved.
  • Loan-to-Value Ratio: A strong down payment will lower your loan-to-value ratio–the size of your loan as compared with the price of the vehicle–thereby bringing down the interest rate you can expect.
  • Debt to Income Ratio: Have a lot of credit card debt? Paying down some of it will reduce your DTI and give a boost to your credit score, which both will result in a better rate of interest.
  • Loan Length: Financing for 60 months or less could result in a lower rate of interest.
  • Vehicle Age: Used vehicles are more expensive to finance, since they’re more susceptible to maintenance issues.

Buy Here Pay Here Car Lots in Elkhart, IN

If you’ve got severe credit problems on account of issues like bankruptcy or repossession, a buy here pay here dealer might possibly seem like a good plan. Nearly all dealer financing isn’t direct to the consumer, in that dealerships go through banks and lenders with whom they have relationships to finance the loans. In contrast, buy here pay here dealers provide loans themselves. You will notice that used autos are the only ones for sale, and dealers may expect you to have a GPS tracker placed in your vehicle. Repossession frequently occurs, and the APRs are about as high as Indiana law permits. If strengthening your credit score is important to you, you are better off applying through us, as buy here pay here dealerships will not help you restore your credit.

Choosing a New Car

Dealerships in Elkhart are full of cars and trucks that you are capable of purchasing, but which wouldn’t be the smartest move. No more than 8% of your monthly income should be devoted to this new payment. For a person living in Elkhart getting paid $2,586 a month, the city average, this would be $207.

Prime Credit Decent Credit Subprime Credit
Car Payment $207 $207 $207
Rate 3.50% 7.00% 11.00%
Months 60 60 60
Money Down $2,843 $2,612 $2,379
Interest Paid $1,041 $1,965 $2,898
Price with Interest $15,256 $15,025 $14,792
Car Price $14,215 $13,060 $11,894

Used Cars for Sale in Elkhart, IN

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