Buying a car can be an exciting experience. There are many people who look forward to when they will own a car of their own. However, the process of getting an auto loan may seem a little intimidating. Here are a couple things you need to know about auto loans.
1. You May Get A Better Rate By Having The Dealer Do It For You
Before you go into a dealership to get a car, you should be preapproved through a bank or credit union for the loan. However, just because you were preapproved with someone doesn't mean that you have to use them. Once you get into the dealership you should tell them the rate that you got and what perks you are getting with your certain lender.
The dealers work with so many different lenders that they know what lenders offer loans on salvaged titles, longer terms, and better rates. This is why you might get a better deal if you can have the dealer show you which lenders have the best options for you. They can help you to apply right then and there, making it easier for you and getting the best deal. You can check out http://www.automaxnm.com for more information.
2. Consider Getting A Longer-Term Loan
If you are in debt for other things, like student loans or credit card debt, your car loan will be very minor. For example, you might have interest rates for student loans around 4-7% and get a car loan for 3%. This means that you will pay more in interest on the student loans or the credit card then you will on the car loan. Thus, if you have more money to put on loans, it may be better in the long run to work on paying off the credit card and student loans first and holding onto the car loan. This is why many people choose a loan with a longer term.
3. Get Your Home Loan Before The Car Loan
If you are going through major changes and are considering buying a car and a home, you should get the home first and then the car. This is because a home loan is much harder to qualify for. Car loan lenders are much more flexible with their lending, but the more debt you have when getting a home loan, the worse off you will be. Thus, buy the home, then upgrade your car.
These are just some things you need to know about getting a car loan