123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Automobiles >> View Article

Which Auto Financing Option Is Best For You

By Author: Anna Wisner
Total Articles: 2

Because there are so many ways to finance a car, there is no reason why buyers should focus on one particular method to finance a vehicle. There are several ways to finance a car and understanding each method is very important for first time buyers. At the auto dealership or at the bank, the paper work may be confusing, so being educated is a requirement. Many first time buyers use only the best financing options; however, there are eight common methods that are highly recommended.

During the shopping process, no matter if it is a new or used vehicle; there will be various financing options. However, most first time buyers simply buy their vehicles directly from the dealer. They do this because it is the most convenient option. They will not have to travel to a bank or a credit union; all financing is done at one location. When using this particular method, be aware of markups; the dealer may increase the financing rates. Although dealership financing options are convenient, most first time buyers think that dealership financing is the only option. Shopping around for other financing options that are offered by third party lenders may be a better choice depending on the dealership.

Banks and credit unions should be considered as well. When banks provide loans to first time car buyers, they provide the loans on their own terms. In some cases, banks may offer cheaper interest rates. If a bank does this, consider taking the bank’s offer to the dealership; the salesperson at the car dealership may lower the dealership’s offer if the bank’s offer is better. A credit union is a great way to finance a car as well.

Another option is using a captive financing company. These types of companies are agents of the car manufacturers. Captive auto companies have one purpose, and that purpose is getting buyers into the vehicles that are offered by the auto company.

First time car buyers that may get a big financial windfall in the future should consider a balloon payment loan. When this method is used, the payments each month will be lower. However, although the payments will be less, the company will need a big payment once the loan term ends.

A secured car loan is a loan that is backed by different types of collateral, such as another vehicle or general property. Because this loan uses collateral, the interest rates are often lower. When first time buyers use their current driving vehicles as collateral, they use an auto pawn loan. However, using this particular type of loan has some major risks. The payments can have multiple loan segments, and the debt and interest could increase.

Long term car loans give buyers a much lower monthly payment; however, the loan takes longer to pay. The usual amount of time it takes to completely pay a long term car loan is about seven years. This has some minor risks as the buyer may end up paying more than the vehicle is worth. Overall, there are many car financing options for first time buyers. Consider the best method based on the financial situation.


Yes Cars and Credit is dedicated to getting you the best loan in South St. Paul, no matter your credit history. If you are searching for an auto loan in South St. Paul using the keywords auto loans St. Paul or auto loan rates St. Paul. Visit Yes Cars and Credit for your next auto loan!

Total Views: 48Word Count: 574See All articles From Author

Automobiles Articles

1. Recognizing The Real Value Of A Student Auto Loan
Author: jeffery reynold

2. Be A Pioneer In The Motorcycle Repairs Here's What You'll Need
Author: Levi Fysh

3. Rockman – The Leading Manufacturers Of Drive Chain Kits & Alloy Wheels For Two Wheelers
Author: Rockman Industries

4. The Most Effective Method To Become An Independent Tyre Dealer
Author: My Tyre Point

5. Atv Tyres
Author: Trident

6. Destiny International Filtration - Oil Cleaning Machine Manufacturer In India
Author: priya singh

7. Wounded Warrior Project & Harley-davidson Surprise Los Angeles Veteran With New Bike As Part Of Miss
Author: 1888pressrelease

8. Vectra - The Heavy Construction & Earth Moving Equipment Manufacturing Companies In India & Europe
Author: Vectra

9. Think Long Term Before You Decide On Your Auto Loan Term
Author: Kaitlin Miller

10. Tips On Choosing The Best Car Breakers Services In Birmingham
Author: Denny Sour

11. Benefits Of Scrap Car Removal In Birmingham
Author: Alex Stewart

12. Black Car, Limousine Service And Airport Transportation West Palm Beach Fl
Author: Classlimo

13. Matters To Look Upon While Looking For A Gear Manufacturer In India
Author: SONA BLW Precision Forgings Ltd.

14. Car Detailing Tips And Keep Your Car Exterior In A Superior Condition With Autofresh
Author: neel patel

15. Things To Know About The Availability Of Different Warranty Plans For Cars
Author: Ewan Thorpe

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: