Thinking Ahead About Auto Loans

[I:]These days, the vast majority of cars are purchased on credit. Because there are a lot of people looking for good auto loans, there are also people looking to take advantage of them. This means being smart and looking over your options carefully before taking out a loan.

Dealerships are a good place to find sweet deals for people with perfect credit. For everyone else, they are often one of the worst places to get a loan from. While they often offer the lowest interest rates around for people with great credit, they also often offer the highest interest rates for people with less perfect credit.

The second-most common place to get a loan is the bank. This can be a good option, especially if you have a good record at the bank but less than wonderful credit overall. The bank may consider your standing in their own good books when deciding whether to extend you credit, as well as your overall score.

One of the best places to find low-interest car financing is your credit union. These are very underused sources of funding – most people use dealerships and banks – but they can often find you a good deal. Membership generally requires something of a person, but often that requirement is simply living in a given area.

Getting pre-approved before you start your search helps avoid any unfortunate instances. People may be willing to consider higher interest rates than they actually want to deal with if they are faced with their dream car while being sold on the loan. Knowing you can’t afford it also means less disappointments when you fall in love with a car that you can’t get enough financing for.

If you are not sure whether you are eligible for any auto loans, ask the loan officer at your bank or credit union to go over it with you. These people deal with the subject day in and day out, and can give you tips on how to improve your credit if necessary. They can also help educate you about what a good interest rate is, and explain other parts of the lending process.

If you are in the market for a used car, make sure you check HertzCarSales’s great car search inventory, and you will find great rental car sales.

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