How To Shop For A Car Loan

The first step with any loan has nothing to do with what you’re buying or where you’re buying it. The first step starts at home, with your bank statements and a spreadsheet. If you don’t have an effective household budget, it’s time to start one. It’s critical that you know your reliably monthly income and where that money goes each month. Budgets aren’t about trying to ruin your mood or anyone else telling you what you can or can’t do with your own money. They’re about clarity and honesty with yourself about what you do and don’t spend, how you do and don’t spend it, and what you can and can’t afford going forward. The choice of what to do with that information is, as always, up to you.

Before committing yourself to a specific vehicle, consider what sort of payments you can realistically afford. The overall price of the vehicle and the total you’ll pay for any loan are important, but if money is tight, it’s that monthly payment that tends to come to the forefront of the discussion for better or worse. Before shopping for a specific vehicle, consider getting pre-approved. Ask your local credit union about current rates or promotional offers. Look for dealer financing specials (no money down, no interest, etc.). The details matter – a half-percentage point or a few financing charges tucked away in the small print can mean thousands of dollars difference over the life of your loan.

Then come to Loanry. Let us know what you’re looking for. We maintain a carefully curated network of reputable online lenders and auto finance specialists ready to compete for your business, whatever your credit rating. Once you’re approved, it’s like you’re shopping with a car credit in your pocket, giving you better leverage with dealers. Even if you’ve already fallen in love with a vehicle, we can still hook you up with how to get an auto loan.

Before You Commit

Buying a vehicle is a major commitment. New or used, cash or financed, it’s a big deal. For many of us, it’s also an emotional decision. That means it’s important to step back and pay attention to the details.

You’ve probably put some serious thought into what you want in a car or truck. How important is mileage to you? How many people should it comfortably seat? Is trunk or bed space an issue? What about comfort? Reliability? And just how loud can you get those speakers when that one song comes on? The answers will be different for everyone, but it’s essential that you consider what matters to you most before shopping. It’s also a good idea to know what you’re willing to compromise on and what parts you consider essential or non-negotiable before you’re actually talking to a salesperson and being offered popcorn or coffee. Otherwise, you may end up with something shiny and new that doesn’t actually do everything you actually need.

The same thing is true of auto financing. What’s the most important factor to you? Is it lower monthly payments? Limited charges and fees along the way? Maybe what you most care about is getting the best interest rate and shortening up the length of the loan so you save as much as possible by the time it’s all over. What is the lender actually guaranteeing in writing? What are the terms of the financing beyond the monthly payment? Are there up-front charges or set-up fees? Penalties for late payments or early pay-off? Only you can decide whether you’re content with any specific offer, but know exactly what’s on the table.

Your credit rating and credit history may be major factors in what sort of financing you’re able to secure. In turn, how you manage this loan will have a dramatic impact on your credit report and credit score going forward. Every payment matters, every month.