A car is a major purchase, and the only way that most people can afford is to get it through financing. As a matter of fact, over 80 percent of all cars bought at any given time are purchased through car financing or car loan. If you are buying a new car, you can easily get funding from the car manufacturer itself. The good thing about this type of investment is that it has an average interest rate that is 33% lower than the national average for car loans. Another good source of funding for new vehicles are the credit unions, which typically offer loans with interest rate 32% lower than the national average. But what are your options for used cars? Read below to know. CarsDirect - Although it is a car-buying service, it also has a portal where you can apply for car loans. The good thing about loans from CarsDirect is that you can apply for loans that are below $5,000. Probably the only downside to this service is that your loan application is sent to different lenders, who may or may not flood your email with spam messages. Still, it’s worth checking out if you’re buying an older car that’s less than £10,000. MyAutoLoan - This is another leads-generation website for car loan lenders. Once you apply for a loan, your application will be sent to the different lenders in the MyAutoLoan network. What we like about this website is that you will have an idea of what you will be paying depending on your type of loan, your location, and your credit score. For example, if you are buying a new car and you have an excellent credit score, you can expect to have an APR of 2.27% if your, and an APR of 8.65 if you live in Los Angeles. To qualify for the car loan, you must have a monthly income of £1,200. The car you want to buy must be less than eight years old or have less than 100,000 miles on it. Your loan amount should be no less than £6,000. US Bank - This bank is one of the best when it comes to loans for used cars. It does not automatically charge higher interest rates for used car loans. You can get a reasonable loan for a used car that’s less than six years old with less than 100,000 miles on the odometer. If you get a loan on an EPA-certified SmartWay vehicle, the interest is automatically reduced by 0.5%. LightStream - A division of SunTrust Bank, Lightstream offers car loans for new and used cars with interest rates starting at 1.99%. The only downside to this financing company is that it is very picky with its customers. You need to have a sizeable income and assets to be approved for a low-interest car loan. Bank of America - This major bank has different auto loan products and allows borrowers to buy a used car that is less than ten years old with a mileage of fewer than 125,000 miles. For people with bad credit, you can still buy a used car through so-called bad credit lenders like Auto Credit Express and Capital One. Both are well-known for offering credit to people with low credit scores when other businesses in the same category would not. Check out the websites of both Auto Credit Express and Capital One to see what your options are. In the UK we recommend you visit http://ww.westwood4finance.co.uk
1 Comment
|