Auto Loans

Most everyone I know has to get an auto loan to purchase a car. If you are like them, this is the page for you. There are all sorts of differnt types of auto loans and we explain most of the below.

Dealer Financing

Most auto loans are made with a fixed interest rate and that holds true with dealer financing. You should be aware that dealers tend to mark up the cost of a loan beyond the going interest rate. They do that to get bonuses from the banks.

Pre-Qualified Loans

I recommend trying to get a better interest rate by applying for a loan before going to the dealer. You can be locked into a rate so in case the interest rates rise during your shopping, you will still have the lower rate. People usually go to their personal bank, but you may also receive auto loans from online providers.

Home Equity Loan

Another way to buy a car is to use a home equity loan. Sometimes the rates on these loans are lower then the going auto rates. Not only will you save there, but you may benefit in tax savings. You should consult your financial advisor if this sounds appealing.

Variable-Rate Loans

These type of auto loans are not too common. They are very attractive during stable or declining interest rates. Some people have made out very well with these loans and other have been burned.
I would like to give one piece of advise. Improve your credit score! You will get a better rate!