Auto Loans Why Not Try a Factory Certified Pre Owned Vehicle
With recession looming large and joblessness staring in our faces, competition has increased among the auto loan financing companies, providing the most favorable terms to the auto buyers of the day. It is now a buyer’s market and you would do well to do due diligence on the Internet and outside, to draw your pound of flesh and get the best finance deal possible. You can obtain a car loan either online or through a local vehicle dealer.
Once you have decided on the type of vehicle you want to buy, visit the dealer concerned and ask him about the incentive programs for that vehicle. At the same time, browse the Internet for a reliable idea of the prices for purposes of comparison. After this, visit a financial institution that specializes in truck loans and discuss matters threadbare with the concerned loan officer. Some experts opine that at any cost you should stay away from the traditional banks because of their never-ending hidden fees.
For an auto loan, your best option may yet be the credit unions that have decent options that are generally more competitive than the banks, but make sure that they are under the authentic jurisdiction of the credit bureau. Otherwise, it may not help you to enhance your credit.
You may also consider the interesting choice of going in for a pre-owned vehicle that is factory certified and available in the yards of the franchises of the premier manufacturers like Toyota, General Motors, Ford, Honda and the like. Here you could avail loans at special interest rates, and enjoy the honest satisfaction of buying a vehicle that has undergone a thorough factory check up. Moreover, you get a warranty and no initial depreciation. The interest rates will definitely work out cheaper than the banks.
If you have a credit score of around 700, you could avail a loan at an interest of less than 7% and it will rise with diminishing credit score. Most certified programs would start with interest rates of about 3.9% and the approximate current interest rates for new cars from established manufacturers is as low as about 5.9%.
Some people want two auto loans at the same time. If you want to buy your adult son a car, you could get him a certified pre-owned car from one of the brand franchises, and while he is building up his credit rating, you could apply for your second auto loan that will definitely entail a higher initial deposit and a credit score rating of around 700.