Finding a great new truck, van, or car can be very exciting. Going on test drives, comparing features, and enjoying that new-car smell can help you imagine life with a new car. But, when it comes to paying for the same vehicle, things can become a lot less fun. Many buyers are so excited that they sign the first loan that they can find.
While this move might give you the keys to your new car quickly, it could really affect your finances. If you don’t get the right loan, you might end up paying thousands of dollars over the life of the loan. When it comes to choosing the right loan, it’s important to find the best terms possible. The following brokers or lenders offer comparatively low rates and many other benefits:
Consumers Credit Union
Credit unions have lower interest rates when compared to banks. This is why consumers prefer these unions. Whoever has an account with a credit union is a part-owner, so CCU (Consumers Credit Union) and other such institutions can offer their members great deals. Some credit unions have membership qualifications like being a resident of a particular state, an alumnus from a specific school, or being a part of a military branch.
One of the biggest drawbacks to CCU loans is that not everyone gets approved. CCU requires a hard credit check with each application and you need to have a minimum credit score of 640. So only if you’re serious about buying a car, apply for this loan.
Oportun
A less-than-perfect credit score should not keep you from buying the car of your dreams. While you shouldn’t expect the same low rates that people with great credit can avail, you can avoid overpaying with Oportun. You can get a loan for a car that you buy from a private party or an auto dealer with this online lender. You can save money over dealerships if you buy through a private party since that’s a cheaper option. You can use Oportun’s refinancing options if you have a good car and are looking for a better loan to match.
Capital One
From something as important as a car loan, some people aren’t comfortable using niche or lesser-known lenders. If you’re looking for the backing of a major financial institution with a household name, Capital One is a great choice. If you’re looking for a used or new car, you can send in a request to get pre-qualified for auto financing using the Auto Navigator program of the bank. Since it’s a soft pull, this step does not affect your credit. Once you get your approval, this pre-qualification is valid at over 12,000 dealers all across the nation, and you will find a list of these dealers on Capital One’s website.