When applying for auto loan, there are various options; from getting the loan directly from the dealer to finding a lender who suits your needs online. Below are five different options; weigh your options and make a decision for yourself.
From the Dealer:
This is one of the popular ways for getting auto loan; contacting the dealer who wants to sell the car to you. The positive of this option is that it is possible to have a 0% financing at your own favorable terms. Although what one needs to understand is that generally many of us do not qualify for the financing of this kind and a lot of us end up paying higher interest amounts.
Finding online auto loan is one option that is getting popular. This method is one of the most popular, secure and easiest way to get your auto loan; also it provides maximum control. Once your finance is approved online, the company then provides you with a blank check which you would take to your dealer; you have more chances of negotiating as you would be buying the car on cash payment.
Although in the present economy situation this might not be a good option but as we all have savings accounts with a bank right across the street, we must not forget even these banks provide loans. If you have a contact at the loan department of the bank, do try this option as they give charge low rate of interest.
Most of the time credit unions provide the cheapest auto loan. They pass the savings to their members as they have low cost of the fund. These unions charge a very small fee for you to be a part of it, so find a union around your area.
Buy Here Pay Here:
The buy here pay here dealer is the costliest way to get auto loan. These dealers make you pay a huge down payment and then ask for payments to be made weekly or in some cases bi-weekly. The interest rates are very high.