Read these 7 Auto Financing Providers Tips tips to make your life smarter, better, faster and wiser. Each tip is approved by our Editors and created by expert writers so great we call them Gurus. LifeTips is the place to go when you need to know about Auto Loans tips and hundreds of other topics.
Honda auto financing is a great way to finance a Honda product, whether it is an automobile, motorcycle or even a recreational vehicle. Honda dealerships all have the capability of accepting applications from potential buyers, but the Honda finance website allows applicants to get through the application process beforehand so they can walk onto the Honda car lot with an approved loan already in place. The advantage of this is that since the loan is already through Honda financing, the Honda dealer will not try to talk the buyer into securing financing through the dealership. Honda offers loans for both the purchase of a vehicle and the leasing of a vehicle, and loans are available for new and used cars. The amount of the down payment is negotiated through the dealership, and the annual percentage rate (APR) of the loan is dependent upon the credit history of the applicant. Honda offers special financing options for recent college graduates, in addition to periodic sales and discounts offered to the general public.
GMAC auto financing is just one of the many lending services within the GMAC company. This company also does mortgage lending and other types of lending. Auto financing from GMAC, however, is quite versatile with plenty of options for borrowers. People can obtain auto loans from GMAC to either purchase a car or lease a car, with several options available for both. One of the more interesting products offered by GMAC is called the SmartBuy program, which is similar to a lease in the sense that the borrower has a lower monthly payment than with a traditional car loan. At the end of the loan term, however, the borrower can choose to either buy the car by making a balloon payment, or to surrender the car to the dealer and pay a fee. GMAC can also assist borrowers in obtaining suitable car insurance for their new purchase. This makes this lender a one-stop shop when buying a car.
Credit union auto loans generally feature lower interest rates than other lenders. The reason for this is that all the customers of the credit union – referred to as "members" – are considered owners in the credit union and therefore are offered attractive interest rates on almost any type of loan. Credit unions only extend credit to members, and therefore if a person is not eligible to join a credit union then he or she will not be able to obtain financing through a credit union and will need to seek out a different lender. Finding a credit union to join, however, is not incredibly difficult. Although some credit unions have very stringent membership qualifications, such as a certain employer or residency, plenty of other credit unions exist which feature liberal membership qualifications. Find a credit union which offers the best auto loan interest rates, contact a member service representative and find out what you need to do to qualify for membership. Many times you can receive your membership and then immediately apply for an auto loan, and some credit unions will allow people to apply for an auto loan and then obtain membership upon the approval of the application.
It is best to secure auto financing before heading to a car dealership to find a car to buy. Although dealerships are often able to offer fantastic interest rates, it is a good idea to get approved for a loan through your local bank beforehand. Why? Having an approved bank auto loan allows you to have negotiating power. The salesperson knows that you already have the financing for a car, and therefore all they need to do is talk you into purchasing a car instead of needing to go through the process of getting you approved for a loan. Being approved beforehand also lets you know exactly how much you can afford to spend, and should also give you an estimate of what your monthly payments will be. If it turns out that the dealership can offer you a better interest rate, then there is no reason why you can't cancel your pre-approved auto loan and obtain financing through the dealer. This way, you wind up with the very best interest rate you can possibly obtain.
How do you decide which auto financing company to obtain a car loan through? There are several different methods you can use to find the lowest interest rate. Web sites like BankRate.com offer instant comparisons of interest rates for many auto financing companies. A good place to start, however, is with the bank or credit union with which you already do business. If you have a bank account at one bank and a savings account with another, check with both to find out what type of interest rates and terms they offer for their auto loans.
The loan process will probably be easier if you go with a financial institution that already has your information. If the financial institution you do business with does not have an attractive interest rate, then your next step should be to check out the aforementioned interest comparison Web site to find the best interest rate available to you. Be sure to use caution when applying for an auto loan with a lender you have never heard of. A quick check with the Better Business Bureau is a good idea before supplying your personal information on an application.
Don't discount the idea of obtaining financing through a car dealership either. But before you go to the dealership, do your homework. Getting a pre-approved auto loan before you buy can result in a lower interest rate.
SunTrust is a financing company which offers auto loans, in addition to several other financial products. With SunTrust, borrowers have the option of either obtaining one of the several traditional SunTrust auto loans, or of instead obtaining a home equity loan for the purchase of a vehicle. Since interest rates for home equity loans are usually lower than vehicle loans, many consumers are attracted to the idea of using a home equity loan to purchase their next vehicle. Add to this that the interest paid on a home equity loan can be tax deductible, whereas the interest paid on a regular car loan cannot, and many consumers are quite attracted to the idea of using a home equity loan to buy a car. Keep in mind, however, that buying a car with a home equity loan puts your home at risk if you are unable to make the payments. Defaulting on a traditional auto loan will result in the car being repossessed, but defaulting on a home equity loan can result in foreclosure.
Volvo is well-known for producing safe vehicles, but the pricing of the Volvo models can make ownership unattainable for some people if they do not have the right type of financing. Luckily, Volvo car finance offers several different products which make buying a Volvo easier. Volvo offers interest rates on the leasing of a new Volvo and since the monthly payment for leasing is generally much lower than the monthly payment for the purchasing of a car, this allows some people to drive a Volvo when they may not have been able to do so otherwise. Using the Volvo website, potential buyers can customize a car to their liking and then apply for financing for the car. The information is forwarded to a local Volvo dealer who will contact the applicant and request further information, such as mortgage information and sources of any additional income. It is possible to apply for financing, get approved and order a car for delivery all online.