Whether you want a fast sports car or a reliable family vehicle you can have the car you want with auto loans. Auto financing is available in different terms and rates to fit your budget and is offered for both new and used vehicles. Loans are offered by financial institutions and often times your dealership. An auto loan is a secured loan meaning if the payments are not made the car may be repossessed by the lender or dealership. Even consumers with a bankruptcy, bad credit or no credit can still receive auto financing with low rates.
When purchasing a vehicle the lender or will use your credit history, market conditions and income information to determine your annual percentage rate or interest. The lower your credit score, the higher your interest rate. For smaller interest rates and monthly payments extending your loan term, putting a down payment on the vehicle or applying with a cosigner who has good credit can help the loan better fit your monthly budget. Some loans may contain prepayment penalties that hinder your ability to pay off your auto loan sooner. Inquire with your lender before applying to avoid these.
Certain automobiles may be harder to finance. Vehicles with more than 100,000 miles, carry a salvage title or are rebuilt can’t be used as collateral so lenders may refuse to extend an auto loan in this instance.
Minimum loan amounts may apply on certain auto loans. If you need less than $5,000 an installment loan or payday loan may be a better choice. To learn about these smaller personal loans visit our short term loan section. View rates and compare lenders online.