New or Used Auto Loans for All Kinds of Credit

Once you find the perfect car, the question becomes how to fit it into your budget. For most people, that’s where auto loans come in. Seventy percent of both new and used vehicle purchases are financed. Automobile financing is a big business, generating hundreds of billions of dollars in loans every year. The competition among lenders and finance companies is fierce. Whether you’re buying new or used, before you blindly sign up for the financing offered by a dealer, consider your other options and make sure you get the best car loan available.

Dealerships don’t generally offer the best automobile financing

Dealerships may be the most convenient source of automobile financing, but that convenience has a price. Interest rates on dealer financing are generally higher than rates offered by banks or credit unions, and significantly higher than rates offered by the best online lenders. Especially in markets like the one we have today where car prices are being slashed to boost sales, financing is a significant source of revenue for dealers. Dealers tack on extra fees and percentage points for added profits, causing customers an enormous amount of unnecessary expense. Dealers sometimes sell the loans they make to other lenders, who pay them all or part of the markup as a commission. Dealers, then, have a strong incentive to give you the highest auto loan quote they possibly can.

Get preapproved for easy auto loans online before you visit a dealer

You can save a lot of money by getting preapproved for an auto loan at Car Deal Expert before you visit a dealer. First of all, you’ll get lowest auto loan rates and the most manageable monthly payments with the shortest possible loan term. Second, you’ll increase your bargaining power when it comes to negotiating with the dealer. Sales agents have much less motivation to oversell your stated price limit when you walk in with a preapproved loan.

Zero-percent financing is rarely the cheapest car loan

Dealerships frequently offer customers a choice between a manufacturer’s cash-back rebate and low-rate financing — typically a loan with zero-percent APR. According to statistics published by the National Automobile Dealers Association, however, only about one-third of the people who apply for zero-percent financing are approved and only 10 percent end up accepting the loan. Nothing is really free, and zero-percent dealer financing usually translates into a higher monthly payment. It’s usually a better deal to accept the rebate and get a low-interest loan online. You’ll save money in the long run.

Save money on the car you have now with car loan refinancing

If you love your car but hate your high-interest payments, you may be able to save a significant amount of money every month by refinancing your auto loan. It’s easy to apply, and there’s no cost or obligation. If you accepted dealer financing or didn’t compare loans when you bought your car, if interest rates have gone down since you bought, or if you’ve been making payments for a couple of years and have improved your credit score, find out how much you can save by refinancing. Car Deal Expert networks with lenders who offer loans for all credit types, so you may be able to save money by refinancing even if you have bad credit.