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Publish Date - September 07, 2021

Author: Dale Peterson

Categories:   Tips & Insights For Car Buying    Auto Loans & Financing   

Auto Loan Financing Tips for New or Used Car

Buying a car is an exciting experience, but it can also be challenging if you do not understand how to go about the entire process.

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Buying a car is an exciting experience, but it can also be challenging if you do not understand how to go about the entire process.

Financing is the key element when planning to buy a car. Unfortunately, some people overlook this aspect and assume the cost of financing a vehicle can all be taken care of by the dealer. Take a moment and learn how you can come out the big winner on your next auto loan financing experience. Keep reading.

Before you walk to the car dealer, you really want to get ahead of the game and not only understand ways to finance before or go ahead and get approved for your car financing. This depends on various factors, circumstances, and personal choices. Below is a general guide to successful car purchasing via pre-approved car financing online.

Determine Your Budget

Budgeting is a crucial element that determines the type of car you are able to buy. Since different brands of cars come with different prices, it's best to figure out the make and model of the car you want and compare the cost to your budget.

Avoid going for what you can't afford. You may want that bright and shinney “Lexus” and you may get yourself approved for it. Understanding what you can afford is so important so that you don’t get over your head in debt trying to pay for the monthly payment. Let me repeat that: even though you may get an auto loan, it is imperative to know IF your new budget is going to put you in a stressful budget situation. You have to remember there are costs beyond just the monthly payment – all sorts of issues like insurance, and maintenance are needed to be considered. So, it’s very important that when you look at your budget, it needs to not only handle a car payment, because it comes with additional expenses such as gas, repairs, taxes, insurance, and title fees.

Remember, if you're going for new car loan financing, you will need to pay back the money with interest at the end of each month. In this case, it is imperative to have a fallback plan to repay the loan. In short, you should consider all factors to help you determine how much you can afford to buy a car. Here are two tools that are great in helping you get a handle on loan amount, payment and interest rate calculators.

Search for a Competitive Auto Loan Quote

Today, there are many auto financing institutions – some good and some not so good. That is why you should make an effort to research and get a lender that best meets your needs and that you're comfortable with, without having to spend hours and hours searching and reapplying to lenders to get a comparison of offers. One lending site provides you with up to four real loan offers when you apply and you get to choose which one is best for your needs. It all take about 3 minutes in most cases, to get up to four offers posted on the secure myAutoloan.com website.

Fortunately, online car loan financing offers you several benefits. For instance, you do not have to worry about visiting the lender physically to apply for a loan. You can do this at the comfort of your home or wherever you are.

In this case, it is imperative to research lenders and go for one that suits your budget and other needs. As you research, check the financing terms for a new and used car loan, such as interest rates, penalties for late payment, and any incentives offered.

An online car loan financing company like myAutoloan.com can be an excellent platform to get your financing. You can apply for a new or used car loan from anywhere as long as you're connected to the internet.

Whether you want a new or used car, the company will get you real loan offers within the shortest time possible, most get responses within minutes. The application process is confidential, safe, and quick, and myAutoloan lenders will also give you a clear guide to get your funding in place, before you visit a dealer. You may also get discounts based on the car loan you're taking.

It's so much better to have the support of a company like myAutoloan to support you and provide you with up to 4 lender, pre-approved loan offers that you can choose from for your new or used car. You get to talk directly with the lenders that make an offer so you can ask questions and express any concerns that you may have. myAutoloan.com has many lenders on the platform and the intelligent matching system can match up to 4 lenders directly to you and make a presentation of all key elements of your loan request. It’s important to make the process as safe, smooth, and easy as possible, and by having the opportunity to review up to 4 loan offers, you get to choose which offer best suits your needs and budget. You are in charge of the key component of buying a car and now you can focus on what price you want to pay for the car of your choice.

You go to a dealer for financing and you will not have those options. They will make the decision on which lender you will use and you can either take it or leave. With pre-approval in hand, or cash that was moved to your checking account, you are more in control that if you just used the dealer financing. If you want to learn more about auto financing, check out this auto finance guide.

Be Aware of Your Credit History

A credit score is a great determinant of how lenders may view your interest rate for your loan application process. Almost all lenders check your credit history before approving your new car loan financing. This does NOT destroy your credit. A little known fact is that when you begin to shop for financing, ideally with an online lending site like myAutoloan.com, you can search all you want within a 14-day period because the bureaus recognize that you are “shopping & Comparing” different finance options.

Don’t assume that if you do not have a good score, you will not get approved for the auto loan. Obviously, lenders have rates all across the scale. Working with myAutoloan allows you to get up to four loan offers from those lenders that work with all folks with poor credit. What I’m saying is don’t give up just because you don’t have great credit. It depends on the lender, and that is why it is imperative to learn the terms and conditions of the lender before you ever go to a dealership. They do have markups so you save by dealing directly with the lenders that you have on an online site like myAutoloan.com. By the way, if you do have great credit, our lenders will most likely make offers that will surprise you with how competitive they are with all other lenders including your bank or credit union.

Fortunately, you do not have to worry even if you have a bad credit score. Some things you can do immediately is improve your credit score by doing several things, such as paying bills on time, clearing your loans, and reviewing your credit reports to get a clue of your current state. It might be better than you think.

It is worth noting that in most cases, credit score will determine how much loan you get and the interest rates. That is why it is imperative to boost your credit rating before applying for the loan to get a higher amount with good interest rates. If not, you risk getting a small loan with high-interest rates.

Consider a Shorter Repayment Term

You can choose a loan term from the myAutoloan.com lenders that make an offer that suits your needs and expectations. But keep in mind that you will pay lower interest rates if you choose a shorter loan term. Consider 36 months vs. 72, for example. If not sure, talk to the lenders who provide you with an offer.

While it may look difficult to make larger payments (see Payment Calculator ) you can be sure of saving more money in the long run. A longer car loan refinance period can be frustrating in the long run. The thought of staying with higher monthly payments for longer periods may not give you peace of mind, and you will also pay more interest in the long run.

If you accept the higher payments, consider working hard to paydown any credit cards you have as that has a huge effect on your credit rating. Consider an auto refinance loan after about 6 months and you might be really surprised to get 4 refinance loan offers that are all lower than what you are currently paying.

Consider Down Payment

Dealers are all different. Some will ask for a down payment, while others will not. However, you can avoid owing the lender more money by making a down payment of 10-20% of the principal amount. If you use the auto payment calculator you can be all prepared when it comes to financing. This reduces the burden of paying the loan and simplifies things for you. While this may look like a burden at first, you can be sure of a smooth loan repayment process.

Rare but something to be aware of. If you do not make a down payment, you might be limited to do various things with your car if you ever have to sell the car due to other emergencies and to downgrade so that you have extra income for any situation. Again, this is very rare but it does happen. For instance, if you need to sell the car while still having a large loan balance due, you may not succeed if the pending loan is more than the car's value. That’s why having a down payment is such a good idea, regardless which lender you may choose. Be aware that if you don’t make a down payment the interest rates will increase, and you will actually be paying more than you would have to if you put money down or had a trade in. Besides, the payment period will have you paying a higher monthly payment and probably a higher interest rate so just be aware.

Choose Favorable Financing Options

Take your time. Look at a website like myAutoloan.com that can help you with tools and finance guides to help you save money and make the auto buying process easier. Mainly, if you have the opportunity to get up to four REAL loan offers, from different national lenders, and in addition, you can CHOOSE which one will work best for you, that’s called empowerment! You receive offers that will allow you to choose terms, payment amounts and interest rates that will be best for you. No middle men, no fees, just straight and upfront support to help you walk into any franchised dealership with funding already in place. Changes the whole experience and you can make it clear that trade in and sales price of the car you want are the two things that are most important to you. It’s up to the dealer to meet YOUR needs and empowers you to be in control, as much as you can, of the car buying experience.

Unfortunately, it can be a frustrating journey if you do not take time and research and see about having your auto financing already approved. So, take your time, relax and go online to check out the proven way to finance your new or used car loan online with A+ rating from the better business bureau. Good luck and happy shopping. Take your time and understand the entire process before approaching a lender. Take the time and you will come out a winner! Happy shopping!