Auto Loan
When it comes to financing a car, there are lots of options. Many people will finance through a dealership, but others may choose to shop around with banks, credit unions and online lenders.
The total payment — including the loan amount, taxes, title, fees and interest – is the number you should focus on when shopping for an auto loan. This is because it will tell you how much money you’ll be spending on the loan compared to what you’ll get in exchange for your vehicle.
Your credit history and score are important factors when it comes to auto loans, as they affect your ability to qualify for a loan and the rates you’ll pay. A good credit score (typically 670 or higher) will help you qualify for the best auto loans available, and it will also allow you to receive competitive interest rates.
Terms — or how long you have to pay back the loan — vary widely. The longer the term, the lower your monthly payments will be, but the more interest you’ll pay over the life of the loan.
A down payment — the amount you pay up front for your car — can also affect your terms. A larger down payment — such as 20 percent or more — can make your terms more favorable.
Repayment period — or how long you have to pay your loan back — is another key consideration when it comes to finding the right car loan for you. Typically, shorter repayment periods — such as 36 to 60 months — offer better terms and lower monthly payments.