5 Essential Things to Know About Car Loans

Unless you’re sitting on plenty of cash, you’ll likely need to finance your new car. There are plenty of options available for car loans, and that can make things tricky – especially if you’re trying to decide between new or used or bank or dealer financing. Below you’ll find out the essential things to know about car loans so you can make the best decision for your needs.

Financing Options

There are a variety of ways to secure financing. You can go through a dealer, your own bank or credit union, a used car lot or even take advantage of the increasing availability of online financing. Keep in mind that a dealer offers manufacturer incentives, while banks and others can’t do so.

Your Credit Matters

Anytime you take out a loan, your credit score plays a key role in how much you will pay. If you have great credit, your interest rate will be lower. However, if you have bad credit, the interest can increase dramatically – especially if going through a bank or dealer. In these situations, online financing might offer lower rates, so make sure you do a bit of research before you choose how you’ll finance.

Know Your Budget

Before you ever step on the lot, make sure you already know what you can afford each month – and stick to it. Salesmen work on commission, so their goal is to sell you the highest-priced vehicle by any means possible. Being able to tell them exactly what you’re willing to pay will reel them in a bit. However, you’ll also have to keep reminding them since they will try to push you into a higher-priced vehicle.

Ask Questions

All that paperwork can be daunting, so if there is anything you don’t understand – ask. There are many fees and other charges that might pop up, so you need to make sure you know exactly what they are before you sign.

Make Sure You Have Approval

You should always make sure you have the approval for the loan before you sign the contract or leave the lot with the vehicle. If you’re told that the salesman is waiting on the approval to come through, it means nothing is finalized. You should never leave your old vehicle and take possession of the new one until you know for sure.

Car loans are important and often necessary for most car buyers. If you are purchasing a used vehicle, make sure to contact YourMechanic for a pre-purchase car inspection to avoid buying a car with serious issues.


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Recent Pre-purchase Car Inspection reviews

Excellent Rating

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184
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83
4,847
184
37
38
83

Attila

19 years of experience
906 reviews
Attila
19 years of experience
Cadillac SRX V6-3.6L - Pre-purchase Car Inspection - Edison, New Jersey
Attila was great! Very knowledgeable and actually detected a fault during a pre-purchase inspection that would have cost me later.
Lexus ES350 - Pre-purchase Car Inspection - Fords, New Jersey
He is very good—offered all the significant details we needed from the inspection. Helped us figure out what needed to be fixed.

Shawn

12 years of experience
285 reviews
Shawn
12 years of experience
Chevrolet Impala V6-3.6L - Pre-purchase Car Inspection - Lansdale, Pennsylvania
Shawn was prompt, professional, and delivered the promised service as expected. This was a used vehicle pre-purchase inspection. Shawn also had to drive to multiple locations to perform the inspection, as the address listed that I provided him with was not accurate, but he still made it to the correct location within his time window and completed the inspection.
Toyota Sequoia - Pre-purchase Car Inspection - Akron, Pennsylvania
Shawn was very prompt in communicating with me and was good at helping me decide whether to purchase a used car. He help me avoid a car with a repaired rusted frame that could be a danger to my family's safety since we were planning on using the car to tow a travel trailer!

Luis

18 years of experience
320 reviews
Luis
18 years of experience
Honda HR-V L4-1.8L - Pre-purchase Car Inspection - Warren, New Jersey
Luis was great. He showed up on time, acted professionally, and gave me confidence with a pre-purchase car inspection.
Acura RDX - Pre-purchase Car Inspection - South Hackensack, New Jersey
Luis did a thorough pre-purchase inspection for me, and found several major issues that made me pass on buying the car. Had I purchased the car, I almost certainly would have ended up paying thousands in repairs down the road. Thanks Luis!

Robert

20 years of experience
1089 reviews
Robert
20 years of experience
Hyundai Elantra L4-2.0L - Pre-purchase Car Inspection - Englewood, Colorado
He did a pre-purchase inspection for me. He was knowledgeable and fast, and knew what he was looking for. I really appreciate all the pictures and documentation he took of the state of the car before purchase. He noted potential issues with the car that I wouldn't have been able to notice. Would recommend.
GMC Savana 1500 - Pre-purchase Car Inspection - Golden, Colorado
I trust Robert. He gave me a list and we will take care of it the week of June 29. I will know then that my vehicle is ready for the winter and is safe to drive. I look forward to getting things ready for another winter of careful driving.

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