Auto Loan
Before you go car shopping, you do your homework. Not only should you know what type of car you're looking for and what features are important to you, you should also have a plan of how you're going to pay for it.
Auto Financing Options
Knowing your car financing options before you set foot in the showroom can save you hundreds of dollars and give you the negotiating power you need to get a great deal.
There are several different places to obtain an auto loan - banks, credit unions, or other financial institutions. Typically, credit unions offer the most favorable rates to their members, but with some research, you may be able to find a better deal through your local bank or even a private . It pays to shop around!
You can also obtain financing through the dealer or auto manufacturer. Sometimes, dealers or manufacturers offer special financing incentives or promotions designed to entice customers to purchase, particulary when their have an overstock of certain model vehicles. While its possible to get a great auto loan deal through the dealer or manufacturer, its best not to count on this type of financing when you walk into the showroom. These programs often have restrictions on the or require a certain to qualify for these programs. Read the fine print!
Another great option for financing your auto purchase is with a . If you own your home and have built up some , you may be able to obtain a home equity loan at a lower than an auto loan, and take advantage of the tax deductability that auto and personal loans don't offer. But it's always wise to consult your tax advisor first to make sure that a home equity loan is a smart financing option for you.
If you own your home and are interested in obtaining a home equity loan to finance your new or used vehicle purchase, can help you find a great deal fast. Fill out our short form and get up to 4 different lenders competing for your loan. Or if you prefer a little more expert advise, speak directly with one of our licensed, experienced , who can help you choose which home equity loan program and term fit with your current financial situation and goals.
Know Before You Go
The best way to auto shop is with a pre-approved loan from a trusted lender, so you know your spending limit and have a solid financing option lined up before you sign a purchase agreement. Then, keep your options open and consider any special financing that the dealer or manufacturer is offering. But beware, offers of no or low , zero percent financing, or low interest rates coupled with a high down payment, need extra scrutiny. Know your numbers - down payment, interest rate, term of loan - before you shop and be familiar with your options.
Also, don't be afraid to ask for a written quote. Most reputable dealerships will honor a written quote for at least 24 hours, so you can have a little time away from a potentially high-pressured sales environment to consider which type of auto financing is best for you.
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