Ready to buy a new car but don’t know where to start when it comes to an auto loan? Here are a few tips you to help you get a car loan that fits your needs.
1) Determine a budget
Figure out how much car you can afford. Not just the monthly payments — think about the loan as a whole amount. Be sure to figure interest in to your estimates.
Get started using our auto loan calculator:
2) Choose a car or truck
After deciding on a budget pick a few cars you like that fit your budget. Consider how often and in what kind of weather you usually drive. Kelley Blue Book is a popular and trustworthy site to help you find a car in your budget.
3) Select a new or used car
Decide whether you would like a new or used car. Consider the year or mileage of the car. Deciding whether to buy new or used could affect your auto loan rate.
See auto loan rates for new and used vehicles:
4) Decide on a loan term length
It’s important when taking out a car loan not to end up paying more for the car than what it’s worth. A low monthly payment may look good but spread over a 60-month term you may pay more including interest than you should. If you can afford a shorter loan term you’ll end up saving more money in the long run.
5) Secure financing before visiting the dealer
When you have preapproval on an auto loan you can focus on getting the lowest price for the car. Who wants to be pressured into a bad rate by the dealership?
Already know what type of car you’d like? Complete our loan application to get preapproved today.