When Angie Thomas got a new job, she moved to Atlanta. In the transaction of her living arrangements, the lender she bought an auto loan from sold off their original company and rebranded. She noticed something was up when they said they’d be back on Monday—it was Sunday night. So, before she went out of town for holidays in her former state, she called the office.
What is an auto loan?
An auto loan is a type of loan. The loan enables the borrower to buy an automobile. The lender gives some of the money out at once, and the remainder when the vehicle is paid for in full. This can reduce the amount that a person would need to save to purchase the car before being granted approval for the different of interest rates between auto loans and car loans (sometimes 20-30%).
How to get a vehicle loan
Getting a loan for a brand new car can be stressful, but there is good news. You have quite a few options when using your own resources to purchase a car. If you get an auto loan at the dealership they may charge an additional interest rate of 1-2% over the credit card rate, if you don’t meet their qualifications you might qualify for one with no fees. Many dealerships back loans up with a warranty as well which protects warranties that come standard on the vehicle.
Common features of auto loans
Vehicles are not cheap and it is typically difficult to get a loan that good. A car or truck can cost thousands in a very short amount of time. Auto loans offer consumer some protection in the financial market until the buyer can save up enough to buy their vehicle on their own.
What to expect from your car loan and lende
Choosing to finance a new car can be a big decision. To help make that decision easier, you should know what to expect from your vehicle loan and dealership. Some things you might want to take into consideration include how much interest rates will vary throughout the business day and what the closing terms might be.