Getting a New Auto Loan

2007-10-15 12:53:47

( Automobiles )



The Need for a New Auto Loan

Unless you have enough cash, you will need to get a new auto loan when you buy a new car. Like a regular mortgage loan, a new auto loan is approved based on your credit information, such as your age, income level, and credit history. Without specific information and documents, your new auto loan will not be processed promptly.

Traditional Ways to Acquire a New Car Loan

Traditionally, you apply for a new auto loan at your bank. If you already have an existing mortgage, you can also use your home equity value to get the car loan. This is simple and quick, as the bank already has your records and does not really need to verify a lot of information about the transaction. You can also get preferential loan rates as long as you have been maintaining an excellent credit history.

Car dealers also offer their own car financing plans, but these may have higher loan rates or stricter terms. Some dealers try to win you over with rebates, interest only periods or less money down just to get your business.

You need a credit report when you apply for a new auto loan. The terms of your loan will depend on the information found in your credit report as well as your personal data. Your new car loan application can take anywhere from one to several business days to get processed and approved.

Online Auto Loans

The web gives you countless opportunities to seek out the best car loan terms and rates. You can also apply for your new auto loan online, just by filling out the online application form. Online sites charge little or even no application fees, or some include it in closing costs.

To get an idea of how much you will need to pay as monthly installment, you can try using the auto loan payment calculator that is available at most auto loan sites.

You or the lending site can easily request for a copy of your most current credit report, which is a vital document in determining your loan rate and terms.

Online auto loan sites are secure, so you won't need to worry about fraud or identity theft. Once submitted, your application is encrypted to ensure privacy and security.

Tips for the New Auto Loan Borrower

There are numerous sites that offer these loans, so you may be quite confused and unsure which one to choose. You may want to shop around for the best car loans so that you will have an idea of your choices. Start with the better-known financial institutions because these have greater credibility. You can then use these as benchmarks as you search for similar loan offers.

Always consult trusted sources only, such as friends and relatives. Make sure that you know the rest of the loan terms and not just be swayed by the lowest loan rates.


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