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

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4,518
175
36
38
78

Chris

22 years of experience
2024 reviews
Chris
22 years of experience
Honda Pilot - Pre-purchase Car Inspection - Laguna Niguel, California
got there on time. communicated great. did the pre-purchase inspection quickly informing us along the way. highly recommended.
Mercedes-Benz C320 - Pre-purchase Car Inspection - Laguna Niguel, California
Perfect expert inspection. Couldn't have asked for more. Chris did not let the dealer sweet talk or try to swindle his way out of mechanical issues. Loved it. Would recommend Chris 100%

Carlos

28 years of experience
404 reviews
Carlos
28 years of experience
Jaguar XJR - Pre-purchase Car Inspection - Costa Mesa, California
Carlos was very professional good communication very detailed I couldn’t have asked for anything better
Jeep Wrangler - Pre-purchase Car Inspection - San Dimas, California
Carlos was great. On a pre-purchase car inspection he gave me a good summary of the pros and cons in easy-to-understand terms and was very helpful in giving me a balanced and intelligent overall view of the vehicle's condition.

Attila

19 years of experience
745 reviews
Attila
19 years of experience
Jaguar XE - Pre-purchase Car Inspection - Springfield, New Jersey
unfortunately i could not view the car in person. But Attila made me trust and value his opinion not only thru his words but also his professionalism and service.
Toyota Avalon - Pre-purchase Car Inspection - Midland Park, New Jersey
Atilla inspected the car and pointed out all the issues the car had, and why it was not worth purchasing.

Shawn

12 years of experience
163 reviews
Shawn
12 years of experience
Dodge Ram 3500 - Pre-purchase Car Inspection - Harleysville, Pennsylvania
Shawn was friendly, efficient and knowledgeable. He kept me informed as he went and did a satisfyingly thorough job. On top of that, he was fun to hang with! Would use him again, for sure.
Hyundai Elantra - Pre-purchase Car Inspection - Chester Springs, Pennsylvania
I have put off buying a ‘new’ car because I’m not mechanical and couldn’t tell if I was throwing my money down the tubes. There was no more putting it off. Shawn was able to verify what I expected: the car in question has external issues but the engine, etc. was sound. The seller was impressed that he did not have to drive to a mechanic for a pre-sale inspection and appreciated the convenience. You have two new customers.

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