A car is a necessity, but it can also be a major investment. Since you most likely don’t have enough cash in savings to purchase a car outright, you have to obtain a car loan. This is standard practice in the car industry and while there are a variety of different loan types, it is important to know where exactly you can find a good auto loan. Shopping for a great car loan does not have to be an overwhelming process if you know where to look. It is best to go into a dealership with a guaranteed auto loan in your hands, this allows you to have the most bargaining power.
Before you go to the dealership, these are the best places to shop for a good auto loan:
Bankrate.com
Starting your search for an auto loan is always a great option. At Bankrate.com, you have the ability to look at the average auto loan rates. All you have to do is enter in information pertaining to the region where you reside and you will get loan offers that are fit to your location. Not all local lenders are included on this site, so if you want to search what local lenders might be offering it is important to remember this site doesn’t offer many of those auto loan options.
Local Bank
It is always a good idea to go to your local bank and at least see what their auto loan options are. Many banks have loan policies that are conservative, so not everyone can qualify for an auto loan from a bank. However, if you meet the qualification requirements, you will likely be able to get access to a great loan with a low rate. If a competitive loan rate is what you are after, you can get that at a local bank. The only trick is to make sure that your credit is good enough to meet the requirements for auto loan approval.
Try a Dealership
You never want to go to a dealership for a loan without doing your research first. However, if you have shopped around and not qualified for financing, you may be able to get a good auto loan from a dealership. Most dealerships have the ability to give customers access to the best financing terms possible. It is still a good idea to do some research and compare loan options to see which gives you the best rate and financing terms.