If you’re saving up money for a vehicle, you may consider a car loan to finance your purchase. Many potential buyers like the convenience of car loans, and they can get approved relatively quickly. However, before you apply, it’s essential to be well-informed so you can make the best decision. Today’s blog from the Quick Loans team features some common misconceptions about car loans.
Only People with High Credit Scores Get Good Interest Rates
If you have bad or no credit, you can still receive a favorable interest rate on a car loan. Some borrowers use a cosigner to increase their odds of a low-interest rate offer. Cosigners must have good credit, and, if necessary, they’ll be responsible for paying your loan. Whatever your situation is, if you work with your loan company you can find a loan that will work for you.
Car Loans Don’t Apply to Used Cars
If you’ve heard that you can’t get a used car loan, this is not true. Car loans are accessible for both new and used cars. You can save more money with a used car loan because it’s more affordable. Remember to make sure your vehicle’s manufacture date meets the criterion of the lender.
Quick Loans Quick Tip: If you take a longer repayment tenure, your payment amount will decrease, since you’ll need to pay interest for the whole tenure. The longer the term, the more interest you pay per payment and less principal.
Apply Through a Dealer to Get the Best Interest Rates
To get the best interest rates, you don’t have to apply for a loan through your car dealer. If you do this, the dealer is likely not to compare offers and give you a fair deal. Do enough research on your own, and you can get a great deal on your car loan.
The Car Loan Will Cover the Full Cost of Your Car
Be aware of misleading ads that say you can get 100% financing on your auto purchase. In this case, the loan will likely have a higher interest rate. Some loan lenders offer 80-85% of the car’s value. It also helps if you have a good relationship with the lender. To learn more about our policies on auto loans and title loans, contact us today.
Choose Quick Loans
These misconceptions about car loans could be keeping you from buying a vehicle. It’s important to uncover what is real and what is false so that you can make that dream purchase. Now that you know the facts, you can choose your options wisely. Quick Loans offers flexible terms and payments, and title loan amounts up to $10,000. Apply online or drop by our Nixa office today.