Car loans are a tricky subject. Rates are even trickier. With so many different options from so many different lenders, it can be difficult to figure out which is the best deal for you. And let’s face it, we’re not all inclined toward paperwork and crunching numbers. That being said, let’s break down a few key things to watch for in your car loan offers.

How long should my car loan be?

Our advice: keep it as short as possible. If you can afford a larger down payment, do it. Many folks look solely at the monthly payment and not the overall terms of the loan. Payments on a 72-month loan seem much better than the 60-month loan on paper. But in the long run, you’re almost always guaranteed to pay more on the longer loans. If you can swing a 60 month term loan (or less) then do it!

Can I get a loan if I’ve declared bankruptcy?

Yes you can get a car loan if you declare bankruptcy, but it won’t be on the greatest terms. If you’ve declared bankruptcy, you’d better come prepared to pay for it. It’s not impossible to obtain a decent loan for your vehicle, after all, you have to start rebuilding your credit somehow. Just go into the process with an open mind and ready to work your way out of credit failure.

How do I know the rate the dealership offers is the best one I can get?

Well, to be honest, you don’t know. The best way to get a feel for the rate being offered is to shop around. Often times the rates that the dealership offer are very comparable or better than third party lenders. However, it’s worth shopping around for rates to get you the best deal and lowest payments possible.

When it comes to car loans, it’s always a smart idea to shop around, ask questions, and keep to your budget. Don’t sign anything that you are unsure about or feel uncomfortable with. You should always walk away feeling reassured about the experience and commitment.

Need help getting approved? No problem. Give us a try!

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