We’ll find you the lowest car loan quote
It’s wise to get approved for before you start shopping for a car, and wiser still to compare loan quotes from several lenders. The problem, of course, is that comparison loan-shopping takes a lot of time if you try to do it yourself, and time, as you know, is everything. That’s where we come in.
When you apply at Car Deal Expert, we do the comparison shopping in just seconds. Our online network includes lenders who specialize in everything from loans for luxury cars and yachts to high-risk loans for people with bad credit. Time isn’t the only thing you save when you apply at Car Deal Expert; you save money, too. We don’t blindly forward your loan request to a lender; we compare interest rates and other variables to find the most competitive financing available for your particular borrowing needs.
Our auto loan quotes beat dealer financing
Financing from a car dealership is rarely the most economical choice for an auto loan. Not surprisingly, the finance charges on loans offered by dealerships typically include dealer markups. When it comes to automobile financing, the lower your interest rate and the shorter your loan term, the less you pay overall for your vehicle. Keep that in mind when you consider dealer financing. Often, a dealer will offer an enticingly low monthly payment, but a low payment may not mean that you’re saving money. If the loan has an extremely long term, your monthly payment can be lower than a shorter-term loan even if the shorter-term loan has a lower interest rate.
Don’t be lured by a dealer’s low monthly payment. If the low payment is the result of a long loan term, your vehicle may cost you much more in the long run. Depending on the price of your car and the length of your loan term, the smallest increase in an interest rate can cost you hundreds or even thousands of dollars. Money is so hard to come by: Why throw any of it away? Money is so easy to save when you have the most competitive auto loan available: Why not apply for yours at Car Deal Expert today?
Our auto loan quotes may even beat “zero-percent” financing
Dealers sometimes offer zero-percent financing, but nothing is really free at a car dealership, not even “free” financing. Dealer incentives can be tempting, but when it comes to a loan with no interest, you’ll need a stellar credit score in order to qualify. Also, you’ll find that the lower interest rate a dealer offers, the less willing the dealer is to compromise on vehicle price. One way or another, when a dealer offers free financing, the dealer will preserve its bottom line, whether it’s a higher vehicle price or additional non-interest finance charges or a combination of both.
Use your Truth-in-Lending disclosures to compare loans
The best way to cover your bases as a car-buyer is to get an online loan approval at Car Deal Expert before you start shopping for a car. Having an online loan quote in hand makes it easy to figure out dealer-financing offers. When you compare dealer financing to your auto loan quote, be sure to look at the lenders’ Truth-in-Lending disclosures, and not just straight interest rates.
The purpose of Truth-in-Lending disclosures is to show you the estimated total costs of borrowing money. A lender is required by law to provide the disclosures within three business days of the date you apply for the loan, but as a practical matter today, most lenders provide the disclosures as soon as you apply. The Truth-in-Lending disclosures will show you the actual annual cost of the credit (Annual Percentage Rate), the dollar amount the loan will cost you (Finance Charge) and the total amount you will pay for the vehicle over the course of your loan (Total of Payments).
When you compare loans, don’t compare interest rates and monthly payment amounts; compare the Truth-in-Lending disclosures. If a dealer’s Truth-in-Lending disclosures are actually more favorable than the disclosures of your online quote, by all means accept the dealer’s offer. But get an online approval first so that you at least have a baseline for comparison.
One more thing about extra-long loan terms . . .
Not only does a longer loan term make your vehicle more expensive, it also increases the chances that you’ll be “upside down” on the loan at some point; that is, you’ll owe more on the loan than your car is worth. When that happens, you can’t sell your vehicle to a private party without paying a lump sum of cash to the lender to zero-out the loan. Neither can you trade it in on a new car without adding the unpaid loan balance to your new loan, and adding an old loan balance to your new loan amount makes it very likely that you’ll soon be upside down again. A long loan-term can lead to a vicious cycle of unmanageable vehicle debt, so pay attention to your Truth-in-Lending disclosures.
How to get the best auto loan rate
- Online preapproval. Get an online loan quote by applying at Car Deal Expert before you visit a car dealer. When you’re preapproved for independent financing in a certain amount, a dealer is less motivated to sell you a more expensive car than you can comfortably afford.
- Actual vehicle cost. Consider the price of a vehicle, and not just the monthly payment on your loan. However shocking the truth may be, remember that the real price of your vehicle is not the price advertised on the window sticker, but the Total of Payments shown on your Truth-in-Lending disclosure.
- Trade-in vehicle. If circumstances permit, consider selling your trade-in vehicle yourself. It takes a little patience, some planning, and some effort, but you’re likely to get more for the vehicle by selling it yourself.
- Down payment. Scrape together the largest cash down payment you comfortably can. The more you pay up front and the less you finance, the less pay for the car overall. Some lenders don’t require down payments at all, but others do, and a bigger down payment generally buys you a lower interest rate. Ten percent of the vehicle price is a typical down payment, but depending on the price of your vehicle and the length of your loan term, it may take nearer 20 percent to avoid becoming upside down.