Finding the Best Auto Loans

Published January 9, 2013 by

When you’re ready for a new vehicle, it’s likely that you’ll need financing to pay for at least part of the cost. Finding the best auto loans will require some research on your part; research into your own credit rating and into what various lenders are willing to offer.

Start by getting a copy of your credit report and taking the time to reconcile any blemishes. Going in to the dealer or bank with a clean credit report will vastly increase the quality of the loans available to you.

The best auto loans are those loans that offer the lowest interest. Generally, these are offered by banks who also have the most stringent requirements for their lenders. If you have excellent credit, visit your bank first and see how much they’re willing to lend toward your new car. They’ll likely require a down payment. If you can afford to pay a percentage of the vehicle’s value up front, expect a better deal on your loan.

Your auto dealer can also get you some of the best auto loans available. The dealers want you to get the car, obviously, and, to that end, they work with many different institutions that fund people in every conceivable financial situation. If your credit is less than stellar and a bank isn’t willing to finance your auto for you, see if the auto dealership itself can help you get the money you need.

The Internet is a great resource for auto financing with some of the best auto loans found online. Being able to compare one to another in detail in your own home is not only easy it also alleviates the pressure of the moment. Remember to compare the interest, the terms of repayment and the total amount they’re willing to lend. As with all things financial, base your decisions on what you really need instead of going for the maximum for which you qualify.

Finding the best auto loans may take a while so be willing to invest some time and effort into the process. Consider starting your search a few weeks or, preferably, months before you actually intend to make the purchase. Remember that it can take up to three months to get errors on your credit report fixed. Because such errors can have a great impact on the amount of money and the terms for which you qualify, it’s a good idea to allot at least that much time to your hunt for the best loans. Remember to be frugal but not rigid in your budget and to look for the best deal, not the first one for which you qualify.