Mountain Top Loan Services

Financing a car can be pretty straight forward, that is unless you are getting it from the dealer. I am not going to bash car dealers here but most people can get a better deal getting their financing before stepping on a lot.

This also takes away one of the dealers bargaining chips. They know they can get you a slighly better price on the car if they are increasing your interest rate. It may seem like you got over but you end up paying more for the price break over the life of the loan.

There are a few different variations of car loans, in the vast majority of situations. Most loans are fixed over a period of 2-6 years depending on how much you are financing. If you are lucky enough to be able to buy a Ferrari, you may be able to get 30 year financing, but you probably paid for it in cash anyway. Sorry, I digress.

Now, you can also get variable rates and balloon loans for cars but I can’t think of many, if any, situations where they are useful. You may argue that a lease is a balloon but I am talking about getting a loan to actually own you vehicle not rent it (although there are some benefits to leasing that I’ll go into in a separate post).

The main things you want to be concerned with are:

• Your budget
• Amount Financed
• Loan Term
• Interest Rate
  

Notice that I did not emphasize payment. Your budget takes that into account, obviously, but focusing on payment is a dealer sales trick. Why do they ask you what kind of payment you can afford? Well, because they can hide a lot of stuff in the payment when that’s the primary focus. Stuff like extended warranties, higher rates, and all kind of stuff you probably don’t want that they make extra profit from. All the more reason to get your financing separately from places like E-Loan
or WeGiveAutoLoans.com.

For more information on auto financing options, please visit our car loan page.

Tags: car loan, auto loans, car financing, auto financing