These days, the vast majority of cars are purchased on credit. Because there are a lot of people looking for good auto loans, there are also people looking to take advantage of them. This means being smart and looking over your options carefully before taking out a loan.
Dealerships are a good place to find sweet deals for people with perfect credit. For everyone else, they are often one of the worst places to get a loan from. While they often offer the lowest interest rates around for people with great credit, they also often offer the highest interest rates for people with less perfect credit.
The second-most common place to get a loan is the bank. This can be a good option, especially if you have a good record at the bank but less than wonderful credit overall. The bank may consider your standing in their own good books when deciding whether to extend you credit, as well as your overall score.
Credit unions are one of the best, most underutilized places to find car financing. Although a very small percentage of people finance their vehicles through credit unions, those that do get some of the best interest rates. The same benefits of having a good history with a credit union may apply as with a bank. Often, membership only depends on residence.
Being pre-approved will make the entire shopping process go more smoothly. You won't be tempted to take a high-interest loan from a dealership because they are good at selling it, and you won't be disappointed if you find the perfect vehicle and later learn that you can't get it, either.
Loan officers, who are professionals who deal with the subject day in and day out, are great sources of information on auto loans. They are employed by banks and credit unions, as well as other lending institutes. Ask them about your needs, eligibility, and more.
Dealerships are a good place to find sweet deals for people with perfect credit. For everyone else, they are often one of the worst places to get a loan from. While they often offer the lowest interest rates around for people with great credit, they also often offer the highest interest rates for people with less perfect credit.
The second-most common place to get a loan is the bank. This can be a good option, especially if you have a good record at the bank but less than wonderful credit overall. The bank may consider your standing in their own good books when deciding whether to extend you credit, as well as your overall score.
Credit unions are one of the best, most underutilized places to find car financing. Although a very small percentage of people finance their vehicles through credit unions, those that do get some of the best interest rates. The same benefits of having a good history with a credit union may apply as with a bank. Often, membership only depends on residence.
Being pre-approved will make the entire shopping process go more smoothly. You won't be tempted to take a high-interest loan from a dealership because they are good at selling it, and you won't be disappointed if you find the perfect vehicle and later learn that you can't get it, either.
Loan officers, who are professionals who deal with the subject day in and day out, are great sources of information on auto loans. They are employed by banks and credit unions, as well as other lending institutes. Ask them about your needs, eligibility, and more.
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