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Auto Loans in Valparaiso (IN)

Financing a car is often a labor-intensive process, and finding a reasonable rate of interest is more critical than ever before. We help clients in Valparaiso and all over Indiana, helping them get approval online for financing. More often than not, we’re able to position our users with an interested lender or dealer within seconds of application.

Car Loan Valparaiso IN

Valparaiso Car Dealerships That Approve Bad Credit

You might want to stay away from buy here pay here lots, which have been charged time after time with underhanded lending tactics. There are larger dealerships that cater to people who have credit problems and provide a better lending experience. More often than not, these types of dealerships offer:

  • Acceptable rates of interest.
  • Smaller down payments.
  • Both used and new vehicles.

Your income and credit will dictate how much car you can get financed. Here is an example based on a monthly income of $3,103, the average in Valparaiso:

Credit Score Income Factor Loan
700 10 $31,030
625 9 $27,927
575 8 $24,824
525 7 $21,721
300 6 $18,618

Remember that this is just an estimate. You may not be able to finance this much, depending on your down payment and credit history.

A finance consultant will determine how much you’re eligible to borrow, and at what APR. If you want to speak to one, be sure to apply online.

Should You Buy Your Vehicle New or Used?

It’s one of the most common questions among car-shoppers: is a used car a better value than a new one? You’re able to finance new cars for longer periods, and at more affordable interest rates, but you pay considerably more overall.

New Car Used Car
Age New 3 Years Old
Price $31,030 $15,515
Down Payment $6,206 $1,552
APR 5.00% 7.50%
Years 5 4
Payment $468.46 $337.62
Finance Charge $3,284 $2,242
Total Outlay $34,314 $17,757

Valparaiso Buy Here Pay Here Car Lots

Buy here pay here car dealers normally work with people who have severe credit problems such as bankruptcy or repossession of a vehicle. Typically, dealer finance is outsourced, as dealers go through a network of lenders to offer the loans. On the other hand, buy here pay here dealers function as both lender and dealer. You’ll find that used cars and trucks are the only thing for sale, and dealers may require you to make payments weekly, at the dealership. The rates of vehicles being repossessed are extremely high, and so are the interest rates. As if that weren’t enough, these dealers don’t report to the credit agencies, so you could make every single payment when they’re due without boosting your credit score.

Rules of Thumb for Financing

It’s best to spend, at most, 10% of your monthly income for your loan payment. Be cautious, though, that you don’t undermine your money-smart decision-making with a loan term of 72-96 months, which may result in:

  • More paid in interest to the lending company.
  • Greater annual percentage rate.
  • Additional time spent under water.

Rather, try to have your vehicle paid off with the shortest term as possible. If you adhere to these guidelines, you will end up financing a vehicle costing approximately 50% of what you earn annually. If you have an income of $37,231 a year, the average in Valparaiso, this would equate to a $18,618 car. Broadly speaking, the less you can spend to acquire a solid vehicle, the better.

Cars in Valparaiso, IN

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