Setting up your financing in advance is an intelligent approach, as there are many advantages:
- Less time spent on the dealer lot.
- Possibility of a lower interest rate.
- Your own dealer visit.
We work with a diverse network of lenders and dealers, and we have one of the highest success rates you’re likely to find. It really is tough to imagine a better way to secure the financing you need.
Financing a New Car in Cincinnati
Many people opt to buy a new car as opposed to a pre-owned one simply because there’s little risk of getting a maintenance nightmare. You know you are getting a problem-free vehicle, and if there were to be any issues, they would certainly be covered under the warranty. Plus, nothing is quite as thrilling as driving home a brand new car, straight off the showroom floor.
However, if your credit isn’t great, a new car’s sharp rate of depreciation, together with high rates of interest, can bring about negative equity, so a strong down payment is encouraged. Generally speaking, new cars are best for people who have good credit, as the annual percentage rates are low enough to combat negative equity.
Used Car Auto Loans in Cincinnati
Preowned cars are cheaper, obviously, which means the payments, as well as the cost of insurance, are cheaper month after month. The shorter loan terms typical of used cars typically mean less interest paid, even if you have a more significant apr rate. If you are upside-down on a used vehicle, it will typically be for a shorter time. Let’s look at a comparison of new and used vehicle loans in Cincinnati, Ohio. This assumes a car or truck that is two years old, and has therefore lost 50% of its value, and a buyer with a prime credit score.
|New Car||Used Car|
Financing a Car with Bad Credit in Cincinnati
Have poor credit as a result of outstanding debts, job loss, divorce, or even bankruptcy? Fortunately, there are lending companies and dealerships in Cincinnati that can assist people who have bad credit. Through us, you can contact an automotive finance expert from a dealer or lender within driving distance who is willing to get you in the driver’s seat. Given your credit issues, you may need to expect a fairly high rate of interest–probably in excess of 10% APR–as well as a 10-20% down payment requirement. Putting cash down may seem useless, but in actuality it helps balance out the higher rate of interest you’re paying, keeping you from being too “upside down” on your loan.
Bad Credit Car Dealerships in Cincinnati
You want to purchase a vehicle that will fit your auto loan, not the other way round, so a discussion about financing typically comes first and foremost. The dealer may need you to corroborate your income through pay stubs or tax returns, and bring a recent lease or utility bill with your place of residence on it. Your dealer representative assist you through this process. No matter what your credit score is, there should be a vehicle for which you can get approved. You’d be wise to go with a payment that is about 5 to 10% of your monthly income. If you make $2,181 per month, this is a payment of $109 (5%) to $218 (10%).
Buy Here Pay Here Dealerships in Cincinnati, Ohio
When you’ve got major credit problems on account of issues like bankruptcy or debt settlement, a buy here pay here dealer might appear to be a good option. Normally, dealer financing is outsourced, in that dealerships go through various lenders to provide the loans, but BHPH dealers engage in direct lending. They are the actual loan originator.
The fact is, you can look forward to inflated rates of interest, large down payments, and vehicles that cost too much given how much mileage and wear they have been through. There’s more: these dealers very rarely work with the credit reporting agencies, and that means you could make all of your payments month after month without increasing your FICO score.
Cincinnati Income and Finances
- Per-Year Income: $26,173
- Monthly Income: $26,173
- Average Car Payment: $240
- Ideal Car Payment: $174 (8% of monthly income)
Cincinnati Car Loan Rates and Payments
To sum up, the recommended auto loan involves the following: down payment of 20%, car payment of 8% of monthly income, and term length of 60 months or less. With an income of $2,181 a month, let’s take a look at the amount you could spend given your credit.
|Prime Credit||Fair Credit||Bad Credit|
|Price with Interest||$12,867||$12,672||$12,475|
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