Open navigation Main Menu Mortgages

Financing your home purchase or refinancing your current loan Finding the right lender Additional Information
Looking for a financial advisor? Take our 3 minute quiz and then match up to an adviser today.



Main Menu Banking

Compare Accounts Use calculators Get assistance from Bank reviews
Looking for a financial advisor? Take our 3 minute quiz and connect with an advisor today.



Main Menu Credit cards

Compare with other categories Compare using credit Compare with the issuer
Are you looking for the ideal credit card? Find it with CardMatch(tm)



Main Menu Loans

Personal Auto Loans and Loans for Students Loan calculators
Find a personal loan in just 2 minutes or less. Answer a few questions to get offers--with no impact on your score on credit.



Main Menu Investing

The Best Brokerages as well as Rob-Advisors. Learn the basics Additional sources
Looking for a financial advisor? Do our 3-minute quiz and then match up with an advisor today.



Main Menu Home equity

Find the lowest rates Lender reviews Use calculators Knowledge base
Looking for a financial advisor? Try our three minute test and connect with an advisor today.



Main Menu Real estate

Selling a house Buying an investment property Locating the right agent information
Looking for a financial advisor? Do our 3-minute quiz and connect with an advisor today.



Main Menu Insurance

Car Insurance Homeowners insurance Other Insurance Reviews of the Company
Looking for a financial advisor? Try our three minute test and match to an adviser today.



Main Menu Retirement

Retirement accounts and retirement plans Get the basics of retirement calculators Additional Resources
Looking for a financial advisor? Do our 3-minute quiz and then match up the advisor you want today.



The search is open and closed.

Submit


9 tips to get a good deal on your first auto loan Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our mission is to help you make better financial choices by offering you financial calculators and interactive tools that provide objective and unique content, by enabling you to conduct research and compare data for free and help you make financial decisions with confidence. Bankrate has agreements with issuers such as, but not restricted to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The deals that are displayed on this site are from companies that pay us. This compensation can affect the way and when products are listed on the site, such as, for example, the order in which they may appear within the listing categories in the event that they are not permitted by law. This applies to our loans, mortgage, and other home lending products. But this compensation does affect the content we publish or the reviews you see on this site. We do not cover the universe of companies or financial offerings that could be open to you.



SHARE:

The Page On This Page on This Page
Prev Next







praetorianphoto/Getty Images
6 min read published September 30 2022
Written by Allison Martin Written by

Allison Martin's career started over 10 years ago as a digital content strategist. She's been featured in a variety of top financial publications including The Wall Street Journal, MSN Money, MoneyTalksNews , Investopedia, Experian and Credit.com.







Editor: Helen Wilbers Edited by

Helen Wilbers has been editing for Bankrate since the end of 2022. He is a fan of clear reporting that helps readers easily find deals and make the best choices for their finances. He specializes in small business and auto loans.









The Bankrate promise
More info
At Bankrate we are committed to helping you make better financial decisions. We are committed to maintaining strict journalistic integrity ,
This article may include the mention of products made by our partners. Here's how we make money .

The Bankrate promise
In 1976, Bankrate was founded. Bankrate has a long experience of helping customers make wise financial decisions.
We've maintained this reputation for over 40 years by demystifying the financial decision-making
process and giving people confidence in which actions to follow next. Bankrate follows a strict ,
so you can trust you can trust us to put your needs first. Our content is created with and modified by
They ensure that what we write ensures that everything we publish is accurate, objective and trustworthy. Our loans reporters and editors focus on the things that consumers care about the most -- the different kinds of lending options and the most competitive rates, the top lenders, ways to pay off debt and many more. So you'll be able to feel secure when making your investment.



Integrity in editing
Bankrate adheres to a strict code of conduct and rigorous policy, so you can rest assured that we put your interests first. Our award-winning editors, reporters and editors create honest and accurate information to aid you in making the best financial decisions. Key Principles We appreciate your trust. Our goal is to provide readers with reliable and honest information, and we have standards for editorial content in place to ensure that happens. Our editors and reporters rigorously check the accuracy of editorial content to ensure that the information you're reading is correct. We have a strict separation with our advertising partners and the editorial staff. Our editorial team does not receive compensation directly by our advertising partners. Editorial Independence Bankrate's editorial staff writes in the name of YOU the reader. Our aim is to provide you the best advice to aid you in making informed personal finance decisions. We adhere to the strictest guidelines in order to make sure that content is not affected by advertisements. Our editorial staff receives no any compensation directly from advertisers and all of our content is fact-checked to ensure accuracy. Therefore, whether you're reading an article or a review, you can be sure that you're receiving reliable and reliable information.



How do we earn money?
There are money-related questions. Bankrate has answers. Our experts have been helping you master your finances for more than four decades. We strive to continuously provide our readers with the professional guidance and the tools necessary to be successful throughout their financial journey. Bankrate adheres to strict standards , so you can trust that our information is trustworthy and accurate. Our award-winning editors and reporters produce honest and reliable information to assist you in making the right financial choices. Our content produced by our editorial staff is objective, factual, and not influenced by our advertisers. We're transparent about how we are in a position to provide quality information, competitive rates and helpful tools to you , by describing how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for placement of sponsored products and services, or by you clicking on specific links that are posted on our website. So, this compensation can affect the way, location and when products appear within listing categories, with the exception of those the law prohibits it for our mortgage home equity, mortgage and other home lending products. Other factors, like our own website rules and whether the product is offered in your area or at your own personal credit score can also impact the way and place products are listed on this website. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.



Making plans to purchase a vehicle for the first time could be one some of the more stressful events available. With so many things to think about regarding the actual car and financing, the loan may fall by the side. Don't let it. Securing a requires research -- but the more you can do now you do, the better off your finances will be later. Low interest rates are the most important factor to an affordable car, no matter the vehicle you choose to purchase. 1. Be upfront about your budget The biggest concern when buying a car should be the cost. Be aware of the amount you be paying each month as well as the total interest that you will pay to . You should also think about the expected maintenance of the vehicle, fuel and insurance all factor into how much you spend. Experts advise not spending greater than 10% of income on your car. Make use of an app to estimate monthly payments and total interest paid. Then check resources like Edmunds or Kelley Blue Book to see the amount you will pay for the vehicles you're considering buying. What you should take away from this is
Examine your financial situation to determine without stretching your budget too thin.


2. Keep in mind that longer terms are an increase in cost. The price of a vehicle is increasing. It's not hard to locate an loan that lasts for six or seven years, but they come with a big disadvantage. A longer loan period does result in an lower monthly costthis could be advantageous if you are on a tight budget -- but it results in higher interest rates overall. Even if you buy an affordable car and you are able to get it, you could soon be debt-ridden or owe more than the car is worth. When you take out that first car loan opt for the shortest term you are able to afford each month. It could mean you need cut back on other areas, but it is by far the most secure option to protect yourself from being liable for more on your vehicle than it is worth. Key takeaway
You'll probably save money on interest rates by choosing a short loan duration and reduce the risk of getting upside down on the car loan.


3. Review your score on credit reports and credit scores.. credit rating is one of the most important factor lenders consider in determining your interest rate. To secure a great rate, you must have excellent credit. Also, you'll require a history of punctual payments. If you haven't had the chance to build your credit score and track record, you'll have a harder getting a bargain. It could be necessary to pay -- which means an interest rate that is higher. If you're able to put off paying on your car loan attempt to create a record of punctual payments. A low ratio of debt to income indicates to lenders that you are able to manage your financial situation. Make a strong financial case for your lenders to score an excellent deal. Take away
Work on improving your credit score before applying to get an interest rate that is competitive in your auto loan.


4. Shop for more than one lender Ccomparing lenders is just the same as comparing car prices for a great deal. The types of lenders you can choose from include: : If you have a poor or zero credit, then you might be qualified for a first-time buyer program offered by a local credit union. You'll have to be a member of the credit union in order in order to qualify for loans, so inquire about the best ways to join before moving forward. Big banks: Consumers with an established connection to a conventional institution may qualify for an auto loan. If you are a first-time purchaser you could be charged higher interest rates. The online lenders typically provide less stringent criteria for eligibility as compared to traditional lenders. This is good news in the event that you don't have a credit history or have a high score, but you can expect a higher interest rate to offset the risk of default posed by the lender. Marketplace lenders platforms have a vast network of lenders. The application you submit is shared with the network , so you can view potential loan deals with lenders that may be a suitable match. Captive lenders: You could get financing through or the finance company belonging to the auto manufacturer. They usually offer auto loan programs for currently enrolled students and recent college graduates. Each lender has different rates and ways of calculating who gets which terms. It is critical to research and make an application with a variety of lenders. This allows you to see what you qualify for, the amount you are able to spend, and how much you will be expected to pay every month. Key takeaway
Shopping around can help that you receive the top price on a car loan.


5. If you're preapproved, shopping around offers another benefit that it will likely end in a that lasts for up to 30 days. If you apply for preapproval, the lender creates an informal inquiry that doesn't affect the credit rating of yours. It gives you time go to the dealer and automobiles without the stress of needing to secure financing. Preapproval gives you the advantage in negotiations. Dealer financing can be expensive because dealers mark up their rates in order to make profits. However, if you go to the dealership with a preapproval document, you may be in a position to negotiate a great deal on in-house financing- if that is the route you want to go. Some dealers will also provide the option of low-interest financing. If you have already been able to get an unbeatable rate with another lender, your choice is easy: reward yourself with a discount. Key takeaway
Getting preapproved helps narrow the list of lenders you could consider and also reduces the impact on your credit score.


6. Choose between used, new or leased Lenders provide different rates on automotive loans for . Lessors have their own method of calculating the monthly payment which is known as the factor rate and you should investigate the factor rate prior to making this choice. If you're planning on purchasing the latest model, be aware that they typically offer lower rates across spectrum. However, newer cars are also significantly more expensive and lose value faster through depreciation. So, while you may have to pay higher interest rates on used cars but you can still save cash. The most important thing to remember
New vehicles generally have more competitive loan terms than used cars However, the total cost will be more expensive.


7. Check out manufacturer specials Most automakers offer first-time buyer programs. Many offer incentives special deals for students in college and recent grads. If you're thinking of purchasing a car for the first time with a good income as well as credit score to back it up, and are interested in financing through your home is a good idea to check if you could make a profit. Manufacturers also offer rebates, and leases with special terms on new models. Keep an eye out for these. You'll be limited to what you can buy and the way you pay for it. But if you already have a clear picture of what you want and excellent credit, manufacturer specials could help you save money on the first car loan. Key takeaway
Check with the dealer to determine whether you are eligible to receive financing incentives when purchasing a new ride.


8. Make use of a co-signer or co-borrower If you don't have great credit, a could be able to get a great deal. The lender will take into consideration both scores of your credit in deciding whether or not to finance your vehicle. The vehicle will become responsible for the loan if you cannot pay on time. However, a co-borrower has ownership of the vehicle and is equally responsible for your loan together with the borrower. Regardless of which you select the person you choose to borrow from, they must have excellent or good credit and consistent source of income that is sufficient to meet the lender's minimum threshold for approval. Key takeaway
A co-signer or co-borrower could improve your odds of approval and help you get an even better rate on an auto loan.


9. Have a big down payment. Once you've figured out how much you can spend, start that's at least 20 percent of your total cost. If you're not able to pay this amount, aim for an amount of at least 10% -- or whatever you can be able to. Try Bankrate's tool to find the right amount for you. It's tempting to buy a more expensive car for first-time car buyers, but all first-time car buyers -- as well as every car purchaser should use a down payment to lower the amount they need to finance. A higher down payment increases your chances of a good interest rate, and also lowers your monthly payment and shrinks the interest you'll pay over the loan's course. Key takeaway
A higher down payment may allow you to qualify for more favorable loan conditions, and your monthly installment will be lower.


Next steps The key to securing a great deal on your first car loan is to be open to shopping around and be patient. You could get a competitive rate by comparing lenders, making on a down payment, and working on building your credit. Find out more


SHARE:
Written by

Allison Martin's work began over 10 years ago as a digital media strategist. She's been published in several leading financial publications, including The Wall Street Journal, MSN Money, MoneyTalksNews , Investopedia, Experian and Credit.com.



Editor: Helen Wilbers Edited by

Helen Wilbers has been editing for Bankrate from late 2022. He believes in transparent reporting that allows readers to easily land deals and make the best choices for their finances. He is a specialist in auto and small business loans.











Related Articles Auto Loans 4 min read Mar 02, 2023

Auto Loans 4 min read Sep 21, 2022

Auto Loans read in 4 minutes Sep 19 2022

Auto Loans (Auto Loans) 4min read Aug 04, 2022






About
Help
Legal Cookie settings Don't share my information with anyone else.
How we make money Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for the promotion of sponsored goods and services, or by you clicking on certain hyperlinks on our website. Therefore, this compensation may influence the manner, place and in what order items are listed, except where prohibited by law. This is the case for our mortgage, home equity and other products for home loans. Other factors, such as our own rules for our website and whether the product is offered in your region or within your personal credit score may also influence how and where products appear on this site. While we strive to provide the most diverse selection of products, Bankrate does not include specific information on every financial or credit product or service. Bankrate, LLC NMLS ID# 1427381 | BR Tech Services, Inc. NMLS ID #1743443 |
|

(c) 2023 Bankrate, LLC. It is a Red Ventures company. All Rights Reserved.

If you adored this information and you would such as to get even more details pertaining to payday loans online same day alabama (loanewqe.ru) kindly check out our web-page.