3 Things You Should Know About Getting An Auto Loan

If you are thinking about buying a new car you might be considering an auto loan. An auto loan can be a great choice, since it will allow you to get the car that you want, but if not used correctly it can be frustrating. Here are some things that you should do to make sure that you are getting the best loan possible.

1. Go Through A Credit Union

If you already bank through a credit union, you should use them to get your auto loan. If you don't already have a credit union in mind, search for one that currently has promotions for auto loans. Many credit union will run specials where they will give you a great deal on interest rate.

You should be searching out this credit union before you go looking for the car. Too many people go to the dealer and then they let the dealer tell them who they should get their loan through. The dealerships have a relationship with certain credit unions, but that doesn't mean that they are the best price. Instead, you should be seeking out the loan, and when you do they will tell you how much they will give you. This will give you hard numbers to know what you can afford.

2. Don't Finance An Older Car That Will Depreciate Fast

When you meet with the auto loan lender they will tell you what kind of car you can get. If you are wanting to only get a couple thousand dollar loan, they will let you get just about anything, however, if you are wanting a bigger loan they will have rules of how new the car should be. They most likely won't pay for the loan on a car that is depreciating quickly in value. The reason for this is that they don't want you into a 5 year loan on a car, when by year 3 you owe more on the car than the car is worth. This is why they will give you a model year that they won't go below and a shorter loan so that you aren't paying off the loan year after the car has died.

3. Lower Credit Score= Higher Interest Rate

Just know if your credit score isn't very good, you will pay a higher interest rate. The credit score greatly affects how much you pay in interest, which is why you need to focus on keeping your score down.

By understanding these things you can get the best loan for your needs. 

About Me

All About Investing Your Money

Hello, my name is Ophelia Baker. Welcome. I am here to talk to you all about investing your money using smart resources and helpful systems. When I started investing, I would simply call up my broker and ask about the best places to divert my funds. I would be given an investment projection that indicated my potential returns over the course of years to decades. Today, I can use online systems and other resources to invest my money without outside help. I will talk about all the different investment options available to people today. I hope you will visit my site daily to learn all about this fun topic.



Latest Posts

20 June 2019
Not all companies have an in-house CFO. Some companies, particularly smaller companies, actually outsource CFO services. Some of the things

16 April 2019
If you know that you are going to get arrested and that a warrant has been issued for a crime, you can get ahead of the police and turn yourself in. I

4 February 2019
Have a community project you want to get off the ground? Need funding to make it happen? Online fundraising might be your top priority. In recent year