Poor credit rankings are prevalent in Kokomo and across the state of Indiana. We believe that car loans ought not to be a huge battle for Kokomo residents, regardless of whether they’ve got poor credit. To get rolling, simply send us your application. We will place your application with a dealer or lender adviser who’ll work hard to get you the ideal auto loan.
Bad Credit Car Dealers in Kokomo, IN
Dealerships that provide financing on site are known as in house financing car dealers, buy here pay here car lots, or tote the note dealerships. It’s better to work with a dealer that can offer you a bad credit auto loan in Kokomo through a third party lender. As compared to a BHPH dealer, such dealers can offer less expensive rates and more desirable terms. Your income and credit will dictate how much car you can afford. Normally, when you have adverse credit, you can get approved for 6 to 8 times the amount you earn per month. For residents of Kokomo making $1,766 a month, this is $10,596 to $14,128. Having said that, you’d be smart to borrow less than you can, reducing your monthly payment to only 10% of your income–$177, in our example.
An auto finance expert can help you determine how much you can borrow, and at what rate. Go here to submit your application.
New Versus Pre-owned Cars
A lot of consumers in Kokomo aren’t aware loans are available for both new and used vehicles. More often than not, a used car is the better choice. The rates of interest for new cars are low, yes, but pre-owned vehicles cost a lot less overall.
|New Car||Pre-owned Car|
|Length||60 months||48 months|
|Total Amount Paid||$19,529||$10,106|
Buy Here Pay Here Dealers in Kokomo, Indiana
Buy here pay here car dealers ordinarily deal with people who have acute credit problems like bankruptcy or repossession of a vehicle. For the most part, dealer financing is outsourced, as dealers work with banks and lenders with whom they have relationships to fund the loans, but buy here pay here dealers handle everything on site. They become both lender and dealer. You will see that used cars and trucks are the only models available, and these are not no money down car deals. Quite often, the down payment is almost the same as what you would pay for the vehicle from an individual seller, and you could wind up paying up to 20% APR. There’s a reason that these retailers don’t have a very good track record. We want to place you with subprime finance specialist who can get you the loan you need, even if you’ve had to file bankruptcy.
Guidelines for Financing
Here’s a great general rule: no more than 10% of what you earn on a monthly basis should be devoted to your monthly payment. If you don’t want to be paying off a car or truck that’s worth less than you owe, paying exorbitant finance fees, opt for a loan of no more than 60 months. This equates to a car that costs around 50% of what you make on a yearly basis. For Kokomo residents with incomes of $21,190 a year, this is a vehicle which costs $10,596. Most times, the less you can spend to acquire a solid car, the better.