Categories Car

4 Auto Loan Facts

Most people who need a car use a loan to help them make the acquisition, since most of us don’t have thousands of dollars lying around to pay the total costs of the automobile in full. At one time only people with good credit could obtain affordable auto loans, but things have considerably changed, and now, people with all credit types can find loan providers. Here are four more facts you should know if you’re ready to get a new car and need the assistance of loan money to make that possible.

1- Apply Online

It is so easy to apply for an auto loan at home from your computer. You can apply any time that you’d like, with an answer to the loan inquiry soon to follow. It’s easy to apply and makes things simple when you’re ready to ride.

2- How Much Can You Afford?

The last thing you want to do is get in over your head when purchasing a car. Believe it or not, dealerships don’t want to see this happen. To minimize the worry, loan calculators offer help determining how much you can afford to comfortably pay on an auto loan. Use the free tool and come out the winner.

3- Know Your Stuff

Before applying for an auto loan, request copies of your credit report from each of the three major reporting bureaus. Going into the dealership with the knowledge of your credit and score alleviates a lot of stress and hard work.

4- You Need a Down Payment

When buying a vehicle, whether new or used, a down payment is needed. The more the down payment, the better, but expect to put down at least 20% of the purchase price at a minimum. So, a down payment for a $30,000 car would be about $3,000.