For most of us, auto financing is a must as paying up front for a new or used vehicle is just not an option. Very few people have the means to purchase a car outright. Fortunately, there are a variety of options available to you. You can find some really great rates on auto loans on the internet, you just have to know where to look. There are dozens of lenders out there willing to set up an arrangement with you.
Common Auto Financing Questions
What is the usual length of a car loan?
Financing terms are generally based on a full year or multiple thereof: 12, 24, 36, 48, 60, or 72 months are most common. The shorter the loan period, the lower the monthly rate but each payment will be higher. The sooner you can pay it off, the lower the total amount of expenditure will be. If you can afford to pay it off sooner, you should certainly do so. This is true of any financing you do, car or otherwise. Minimize that interest by paying it off as soon as you can.
Do I have to put money down for my auto financing?
It depends on the lending institution. You do not have to put money down with one of the leading financing providers, FreshStart, a well-established company in the industry. You can get the lowest auto financing rates here. If you have bad credit, however, it might make sense to put some money down to lower your monthly rate.
What will my monthly interest be?
The interest varies from day to day and from lender to lender, based on a variety of market conditions. The rate of your car loan is also affected by the length of your car financing term and how good or bad your credit history is and current financial standing. You definitely want to shop around before you make your final decision, as there are many options now available to you online.
Can I pay off my auto loan early or will I have to pay a penalty?
Some lenders will charge you a penalty for paying off your loan earlier than the time delineated in the initial agreement. However, 1800 FreshStart Financing will not charge you a penalty for early termination.
What if my credit is really bad…can I still get as loan?
Absolutely. Millions of Americans have less than ideal credit, and they’re still all driving cars. If your credit is not stellar, you can usually still get auto financing from the dealer, it will just be at a higher rate, as they have to protect themselves from potential default.
There are also third party companies that specialize in auto loans to individuals with bad credit, so there are plenty of options for you. Don’t let bad credit keep you from looking into financing options.
After I secure a great low rate how long do I have to lock it in?
As long as all financial factors remain the same, the rate you are quoted by the lender will usually stand for 30 to 45 days following. After this time period elapses, you will usually have to reapply for car financing to secure a new rate. This should be enough time for you to get several rate quotes and decide what you are comfortable with.
Can all vehicles be financed?
Typically all new and not too old used cars as well as light trucks can be financed by most companies. They typically also don’t like to finance vehicles that have a huge amount of mileage already on them. Your best bet is to ask the company that you are considering if your vehicle would qualify.
How easy is it to get a quote on financing?
Most companies these days make the process very simple. It’s a matter of entering some basic information on their website and they usually get back to you within 24 hours, if not right away. It’s certainly much easier than it was years ago, and there is a lot of competition which means better rates for you. Get started today and see how easy securing car financing online can be.
Should I finance through the bank, my dealership or elsewhere?
There are pros and cons to all lenders, so it’s just a matter of choosing which one most appeals to you. Going through your dealer is probably the easiest of the three, as they will take care f everything for you and you don’t need to visit a bank or research third party lenders.
On the other hand, you may have a great relationship with your local bank and they might be able to provide a great package for you that is better than what the dealer is willing to give you.
If saving money is a huge priority, then a third party lender might be your best bet, as they are oftentimes much cheaper than the rates the dealer or your bank will offer. You just have to do a little more work and shop around, but in most cases it’s well worth the additional effort to lower your payment.