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: 55Word Count: 574See All articles From Author

Automobiles Articles

1. Why Automobile Companies Should Tie-up With Drivekool For Rto Services
Author: drivekool

2. 2018 Best Dirt Bike For Kids Of Different Age Groups – Kids For King
Author: Kids For King

3. How To Get Your Car Ready For Summer
Author: vibhuti Chouhan

4. Rockman Moldex-carbon Composites Company In India
Author: Rockman Industries

5. How To Know Kinds Of Mechanical Repairs Done By Automobile Mechanics In Vista
Author: Andrew Raymond

6. Fleet Wraps The Best Way To Advertise Your Business
Author: davidwaner

7. What Keeps Planes Up And Running
Author: Xtreme Aviation

8. Car Rental Seychelles Should Be Considered When You Are Looking Forward To Make Your Commuting Safe
Author: Jeffrey Pham

9. Your Purpose Of Usage Will Define Whether It Is Best To Choose The Cruiser Over The Touring Bike
Author: Levi Fysh

10. How To Check The First Auto Repair In Any Local Garage
Author: Mark Josesh

11. How To Know Hydraulic Hose System Design
Author: Ryan gary

12. Simulators In Mining Industry
Author: Eesha Zaveri

13. How To Manage A Down Payment For Your Next Car?
Author: Williams Orchard

14. Types Of Forklifts Their Use And Advantages
Author: Raunak Kadam

15. Why You Should Have A Portable Jump Starters For Cars – Reasons!
Author: Anthony Farinola

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