The one thing that’s keeping you from driving away with your dream car is an auto loan. I know shopping for a new car, truck or van can be an exciting time.
There’s no other feeling like it.
Comparing different features and taking it for a drive just make you visualize your life in it.
However, when it comes to paying for your new car, things can get complicated and not as fun.
Too often, buyers are so in love with their ride that they are willing to sign the first loan they can get their hands on.
But hold on, not so fast.
While that surely gets you behind the wheel quick and drive off in your new car, it could set you back financially.
In fact, getting the right auto loan is just as important as picking the ride itself.
With a wise selection, you can save tons of money in interest and installments. Meanwhile, other offers can as easily get you to overpay for your new ride and leave you with a dent in your finance.
This is true whether you’re buying a brand new car, something new to you, or refinancing an existing loan.
Regardless of the newness of the car, it’s essential to find the best terms possible.
The following lenders and brokers offer low rates and allow you to keep your payments low.
But before we head over to different offers available on the market, let’s take a quick look at what auto loan is.
And more importantly, how it is different from other loans and how to qualify for the best ones.
What is a Car Loan?
Car loans are loans lenders provide for the sole purpose of borrowers buying a vehicle. Lenders write auto loans for all types of vehicles including cars and motorcycles.
They are generally available for used or new. But one thing to remember is depending on who’s offering the loan, it may come with more specifics.
How are auto loans different from other loans?
In many cases, auto loans are quite different from personal loans.
And what sets them apart from typical all-purpose loans is security.
Many auto loans are secured loans, which means the vehicle serves as the collateral. This gives the lender the right to repossess the car should the borrower fails to make loan payments.
In contrast, many personal loans which can be used for different purposes are not.
Because there is a valuable backing the loan, many auto loans tend to result in lower rates than a personal loan.
However, there are still a number of things that can influence your rate, loan terms, and length.
So let’s take a look at
This leads me to the next point – creditworthiness.
However, dealership financing can be the best deal in some specific situations.
So who’s offering auto loans?