e- Best Auto Loans

Buying a new or used car? Before you say “yes,” there are many things you should know to avoid making a bad deal.

Where Do You Start? Get the cheapest auto loan first. Auto loans online, from a bank or credit union usually have better interest rates and lower fees than auto loans directly from the car dealer. If you are approved for a loan BEFORE you visit a dealer, you can usually negotiate a lower purchase price, resulting in lower monthly payments.

Always look at the fees associated with an auto loan. A loan from the car dealer may have lower interest rates than one offered by a bank or credit union, BUT it may be more expensive after you include all of the fees.

Is a Lower Monthly Payment the Best Option?
Not Always … Shorter loan repayment schedules cost you much less in the long run. Car loan terms of 36 months to 5 years are typical. Longer terms will lower your monthly payments but they will also raise the overall cost of the loan and can force you to keep a vehicle for longer than you want.
Remember: A down payment can make a big difference, the more cash you can pay up front, the better the loan terms you should receive.

Beware of balloon payment auto loans! Do not agree to a loan with manageable monthly payments that ends with your having to pay off the loan in one large “balloon” payment at the end. If for some reason  you have trouble making the last payment of the auto loan, you could lose your car.

Also beware of offers that say:“No credit? No problem!” These are often bad deals that trap consumers with high payments and hidden fees. While this is not always the case use due diligence when responding to one of these deals if you want the cheapest rate, make sure to know all fees associated before you sign a no credit bad credit auto loan contract.

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