What you didn’t know about Auto Loans

It’s always wonderful and exciting to buy a new car. Choosing among the wide variety of models and makes that crowd the market is a difficult job. Another major consideration most of us have to make is financing and payment for the car. Auto loans are available at all major banks and credit unions. Car dealerships themselves offer financing. Understanding the nuances of the available car loans will help you as a consumer make the right choice so you can buy your vehicle at a reasonable cost.

* Whether your bank or credit union is the source of funds, all lending institutions that offer auto loans or personal loans of any sort, will view your credit report. All US consumers are entitled to a free credit report to view their own credit. You can take some steps to rectify any deficiencies on your report. A healthy credit report will mean that banks and other lending institutions will offer more favorable terms on your car loans.

* Do not go over budget. Repayments on your vehicle should not be more than 20% of your monthly take home pay.

* The terms of the vehicle loan will determine how much you pay now and how much it will cost you in totality. Initial low costs do not imply that the total cost of the auto loans will be low. Low down payment actually increases the total cost of the loan, leaving the consumer “upside-down” (meaning the consumer owes more on the vehicle than it is worth) for years to come.

* Best deals on auto loans might require the borrower to be insured. Without life insurance and disability insurance you could not expect banks or lending institutions to offer you good terms.

* You don’t have to get your auto loans from the car dealerships. Shop around for the best deals. Banks, credit unions, online lenders, P2P lending sources may be cheaper sources for your auto loans. With knowledge of competitors’ rates you can expect to bargain better and get more favorable terms for your loans.

* Read the small print. Some creditors will charge penalties for paying off your loan earlier than agreed. Find a lender that will not charge prepayment penalties and allow flexible terms on your repayment.

If you have a long standing relationship with your bank, approach your bank for auto loans. Wichita, KS residents can get favorable terms with or without collateral from their local banks.

Auto Loans Wichita, KS – If you are looking for favorable terms for auto loans, Wichita, KS based Southwest National Bank offers competitive and flexible loans.

Author: Victoria Garcia

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