Auto Loans in Lima (OH)

Looking to purchase a new or preowned car or truck? If you are like the majority of consumers in Lima, odds are you will need a car loan.

We work with an extensive network of lenders and dealers, which means we can help applicants get pre-approved for financing, even if their credit isn’t ideal. We match you with a finance professional who’ll direct you each step of the way.

Car Loans for New Cars in Lima

Most consumers in Lima finance or lease their new cars, as they quite simply cost so much these days. Financing is popular, as it enables you to own the vehicle, but there are special concerns when financing a new car. The moment you buy it, a new car loses one fifth of its value, which means that negative equity is a more significant risk. For this reason, lenders typically require about double the down payment for a new car versus a used one. However, interest rates for new cars are lower, and it is sometimes easier to finance a new car with bad credit. In any case, you are best off meeting with a vehicle finance specialist to decide if a new vehicle is right for you.

Auto Loans for Preowned Cars in Lima

Used vehicles are a smart choice for the frugal shopper.

The finance fees for preowned cars and trucks are slightly more expensive, but other advantages, such as a lower price and less extreme rate of depreciation, more than make up for these heightened rates. A lot of lenders, however, will only finance cars from actual dealerships, not from individual parties. Below, we have assembled some data that will help you decide if it’s best to finance a vehicle that’s new or used. We are assuming a car or truck that is two years old, and has therefore lost one half of its value, and a buyer with a prime credit score.

New Car Used Car
Price $25,780 $12,890
Down Payment $5,156 $1,289
Interest Rate 5.00% 6.90%
Months 60 48
Monthly Payment $389.20 $277.26
Finance Charge $2,728 $1,708
Total Paid $28,508 $14,598

Lima Auto Loans for Bad Credit

There are a variety of issues which can bring about a low credit score: medical bills, repossession, bankruptcy, and much more. While below-average credit could make it tricky to finance a car, you are not without options.

Luckily, we serve people all across the credit spectrum, helping them secure the loans they need.

Bad Credit Car Dealerships in Lima

Looking for a car which fits your needs and budget is crucial, , especially if you will have a high rate of interest resulting from bad credit.

If you apply through us, you can line up your loan ahead of time, then select a day to sign and drive. Your car payment really should not be beyond 10% of your income. For an individual earning the Lima average of $2,578 of income per month, this is $258. Calculating this based on your own income is simple enough. All you have to do is divide your monthly income by 10 for your own maximum payment.

Lima Buy Here Pay Here Car Lots

Buy here pay here dealers normally do business with people who’ve got acute credit problems like:

  • Chapter 7 or 13 Bankruptcy
  • Foreclosure
  • Involuntary Repossession

They seldom check your credit, which means your credit problems probably won’t be an impediment, but you really pay for this down the road.

Downsides include exorbitant interest charges and down payments, not to mention steeply-priced vehicles and weekly payments Worse, these dealerships seldom report to the credit reporting agencies, and that means you could make all of your payments punctually without increasing your credit score.

Lima Income and Finances

  • Income Per Annum: $30,933
  • Monthly Income: $30,933
  • Typical Car Payment: $284
  • Recommended Car Payment: $206 (8% of monthly income)

Vehicle Budgeting in Lima

Have you considered how much car you can finance? Check the chart below, but keep in mind that the rates of interest have been approximated, and the numbers presuppose an income of $30,933 per year, the average in Lima. Loan length is 60 months.

Good Credit Decent Credit Subprime Credit
Monthly Income $2,578 $2,578 $2,578
Payment Amount $206 $206 $206
Interest Rate 3.50% 7.00% 11.00%
Months 60 60 60
Purchase Price $14,171 $13,019 $11,857
Money Down $2,834 $2,604 $2,371
Interest Paid $1,037 $1,959 $2,889
Total Paid $15,209 $14,978 $14,746