Affordable Car Loans: Where and How to get Cheap & Reliable Car Loans

Affordable Car Loans: Are you in the market to buy a new car and do not have enough money to buy the exact car you want? There is good news for you. There are affordable car loans that can help you purchase your dream car.

Buying a vehicle can be one of the biggest purchases you can make as a person, but that you do not have the finance to purchase one does not mean you cannot actually purchase one. There are places you can find the financial help that suits your unique set of circumstances.

Where and How to get Affordable and Reliable Car Loans

The strength of some economies combined with increased competition from online and non-traditional auto lenders has made it easier to get approved for an affordable auto loan. However, since, there are a lot of options on the market today, you need to be careful.

What is a Car?

A car is a wheeled motor vehicle used for transportation. Most definitions say they run primarily on roads, seat one to eight people, have four tires, and mainly transport people rather than goods. Cars came into global use during the 20th century, and developed economies depend on them.

What then is a car loan?

A car loan (also known as an automobile loan, or auto loan) is a sum of money a consumer borrows in order to purchase a car. Car loans follow most of the same rules and procedures that apply to other loans. In most cases when purchasing a car, a borrower will specifically apply for a car loan; however, a consumer can also use a personal loan for the same purpose.

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How to Obtain a Low Interest Rate Best Car Loans

How to Obtain a Low Interest Rate Best Car Loans

To obtain a low interest car loan, you must keep the following details ready: Name, residential address, social security number, etc.

Also, you must have proof for having regular and sufficient net monthly earnings for how long you have been on your current job and past employment. Also, you must have and present information relating to various other debt payments including credit cards and mortgage.

Best Online Car Loans

The following are some of the best car loans available:

  • Cars Direct

It is pertinent to know that Cars Direct is not a lender itself but connects consumers with lenders after they fill out a simple application. It does not impose any minimum credit score requirement, so it may be a good option for drivers seeking a bad credit auto loan.

It may interest you to know that you qualify for better rates if you can have a strong credit history, and there are other requirements borrowers must meet, including a minimum income requirement.

It has the following packages: Minimum income of $500 to $2,000 per week, depending on the auto loan lender Cars Direct pairs you with, repayment terms ranging from 24 to 84 months, and there are no minimum or maximum loan amount limitations.

However, some of its disadvantages are:

  1. Buyers must deal directly with the car dealership to secure financing
  2. Can expect to receive calls from other lenders
  • Light Stream

This is a division of Sun Trust Bank. Light Stream is a reputable lender offering auto financing to qualified borrowers. Light Stream auto loans do not require a minimum annual income but there are other credit criteria borrowers must meet, such as average to good credit.

If you are considering getting a loan from Light Stream, please be informed that it has: Minimum credit score of 660, repayment terms ranging from 24 to 84 months, depending on the year of the vehicle and amount financed.

Also, there is minimum loan amount of $5,000 and maximum amount of $100,000, no restrictions on the age or type of car as well as the possibility of approval the same-day applied.

However, some of its disadvantages are:

  1. Borrowers with bad credit may not qualify.
  2. A hard pull is required to check your credit.
  • Auto Pay

This is a newer addition to the online auto financing market. The finance company offers an array of car loans for borrowers with a range of income and credit qualifications.

Auto Pay auto loans come with the following terms: Minimum credit score of 600, minimum annual income of $24,000, repayment terms ranging from 24 to 84 months, depending on the year of the vehicle and amount of the loan, minimum loan amount of $2,500

Also, it has a maximum loan amount of $100,000, and its interest rates range from 1.99% to 15.99% depending on credit score and income. With Auto Pay, you can compare rates from different lenders, no social security number is required, and offers are available for up to 30 days

However, some of its disadvantages are:

  1. Minimum credit score and income required
  2. Higher loan terms can lead to paying more interest
  3. Interest rates may be higher than comparable lenders.
  • Wells Fargo

This is a global financial institution that offers affordable car loans to qualified borrowers. There is no minimum income requirement, but there are other credit criteria borrowers must meet to be eligible.

To get this loan, please know that: It has a minimum credit score of 650, repayment terms ranging from 12 to 72 months, minimum loan amount of $5,000, maximum loan amount of $300,000, as well as interest rates ranging from 3.9% to 19.51%

Some of its advantages are: Quick application process and fast approval, pre-approvals available, competitive rates for highly qualified borrowers, and financing for private party and lease purchases.

However, some of its disadvantages are:

  1. It has origination fee of $99.
  2. It has 48-month maximum term for older vehicles.

Apart from the above discussed affordable car loans, when looking or shopping for a car loan there are important things you should consider.

What to Look for in a Car Loan

First and foremost, be aware of the interest rate offered by your lender of choice. The interest rate dictates how much you will pay over the life of the loan in addition to the original amount financed.

It is important you know this because; a higher interest rate means you pay more for your auto loan. In addition to the interest rate, you should also look at qualification requirements, including minimum income, minimum credit score, and vehicle requirements.

Also, review the strength of the financial institution offering auto financing, along with the term length of the loan and payment options. Each of these factors plays a role in how well the car loan used to purchase a new or used vehicle fits into your financial life.

Having done that, you need to know how to get the best car loan.

Steps and things to Consider Getting the Best Car Loan

There are several steps you can take to ensure you get the right car loan with the best rate for your purchase.

To get a good car loan, consider the following: Shop the loan, then the car, know your credit, look for an interest rate discount, select a shorter loan term, avoid variable auto loan rates, consider a down payment, check out dealer financing, and work with select dealerships

From the above therefore, you can see that there are car loan options for borrowers with just about any credit history, income, and vehicle financing needs.

In a Nutshell

However, finding the right one can be a challenge if you do not know where to start. Be sure to shop around and consider all of your auto loan options before making your decision.

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