Car Loans – Financing
When choosing a lending agency for borrowing money to buy your car, you should try to obtain quotes from multiple lenders. Complete the form below to help you find a lender and a great interest rate on your next vehicle:
If you have excellent credit, then you may qualify for a low or no interest rate financing offer. Generally speaking, the low or zero interest financing loans are offered by the dealer or manufacturer for slower moving inventory. But again, if you have good credit and like the model being offered it can be a great deal.
Our financing partners can allow you compare rates from multiple lenders even if you have no credit or your credit is not so good. Your interest rate is calculated by a number of factors but most importantly your credit score, if you have blemishes on your report, you can still finance but the interest rate will be higher. When shopping around, be patient and try to get the best deal that fits into your budget.
When given the option of a three-year or six-year loan, it may be tempting to choose the longer loan since your payments will be less. However, if possible, choose the lesser time, which will save you a lot more money in the end based on interest. If you do choose to take a longer loan, investigate if there are any penalties for paying your loan off early.
Make sure you know how much more the loan will cost you over the life of it and then decide if it’s worth going for a longer term. If the lower payment is appealing and better fits your budget, then longer term may make sense. But again, ONLY if you plan on keeping the vehicle for a long time. Most people will trade-in their vehicle much earlier than 6 years.
Note – If you go with a loan through a dealer they may try to push for longer term financing in (they usually make more money off this). Just remember they are doing what is in the best interest of the dealership and not necessarily you.
If you can obtain a pre-approval before walking into the dealer, it can give you more control over the buying process and make you less likely to be taken advantage of. Sometimes the lending agency may provide a buyer with a check not to exceed the approved amount. This is a great safety net in that you cannot be talked into buying a more expensive vehicle. Moreover, never feel embarrassed by double-checking figures to ensure everything adds up to what you agreed to pay.
Most importantly figure what vehicle you can comfortably afford. After discussing it with a lender, you will be able to determine your level of comfort. If you find that the payment is too much, shop around for another type of vehicle or consider a used one. There are plenty of great used cars which are almost new and carry a warranty. Just do your diligence and know the value of the type of car you are looking for. You could save thousands by having this knowledge and find a great pre-owned car that looks brand new. People buy on emotions, take a step back and be smart, do not buy purely on your excitment of owning a particular vehicle if you can not comfortably pay the monthly payment. In the long run , you may be much happier that you decided to get a nice car that you can afford and be proud of.