Welcome To Automobile Loan Information - New, Used & Refinance

Next to buying a home or funding your children's education, buying a car is one of the most expensive purchases you'll make.

Car-related expenses, such as gas, maintenance and insurance, can take a big bite out of your wallet.

Once you have made the decision to purchase a car, you may need to seek financing. There are several ways to finance the purchase of your vehicle and you need to research the different options before you sign on the dotted line.

The world of auto lending and leasing has become both harder and easier in the past few years. There are more different types of car loans than ever to compare, but more tools than ever allow you to make those comparisons.

Most car loans are very similar in structure to fixed-rate mortgages -- they have a set period and a set monthly payment, and are secured by the asset, in this case the vehicle. If you fail to pay the car loan, the vehicle can be repossessed.

The fact that auto loans are secured loans gives lenders some assurance they will get something from you even in the worst case scenario. In other words, if you don't make the car payments, they get the car back. That makes them willing to lend money at lower rates than they will for unsecured loans, such as credit cards, but at higher rates than for mortgage loans secured by homes.

With rare exceptions, automobile loans are amortized loans, with each monthly payment split between interest and principal. The portion of the payment devoted to principal is tiny at first, and then gradually rises as the loan ages.

If you do decide to finance through the car dealer, you can negotiate the interest rate. Car dealerships usually have several vehcile loan sources, including local banks and the manufacturer's credit company. Each source sets their rates to the car dealer.

It is important to investigate other sources for an auto loan (such as your bank or credit union) before you sign on the dotted line. Investigate your vehicle financing options and find out from banks or credit unions if they have any special deals right now.

New Car Loan - Buying a new car is exciting. You will be the first owner and you won't inherit any of the problems that can come with a used vehicle. There are several way to purchase a new car. Dealers often offer attractive interest rates usually with little or no down payment. It is definitely worth talking to the car dealership to get their best rates on a new car loan.

Another option is getting a new car loan online. There are several reputable companies that offer the convience of applying for a new car loan online.

Capital One Auto Finance is a company that we highly recommed. It is quick, easy and allows you a lot of freedom of choice. Here is how a new car loan through Capital One works.

The first step is to apply online. It is free, fast and there isn't any obligation. Once you have been approved, you will receive your loan package in the mail within a few days. The loan package will give you the terms of the new car loan. This includes the loan amount you have been approved for, the interest rate, length of the lcar oan, and a blank check. The blank check can be filled out by you and given to the dealer for up to the loan amount you have been approved for. The new car loan only goes into effect if you write the check.

Interest rates on new car loans can change often, so it is important to shop around for a good interest rate. Interest rates for new car loans online usually range from 4% to 5.5% and from 36 months to 72 months.

Used Car Loan - Buying a used car can be a little more difficult depending on how you go about it. Remember the first rule about buying a used vehicle. Where it is from a dealer or a private individual - always have an independent mechanic that you trust check it out before you buy it! That will save you a lot of money and headaches in the future.

Once you have selected a used vehicle, have test driven it yourself, AND had your mechanic give it a thumbs up, then you might need to pursue getting a car loan. Some private individuals might offer you financing themselves if the car has been paid off. If you do a private car loan, get everything that you have agreed up in writing.

You can get a car loan through your bank or credit union. Usually, they will want some assurance that the vehicle is worth the value they are lending - in case they end up taking possession of it later.

A used car dealership might offer you financing through their bank. It might be a good option for you depending on the terms of the loan. Again, you will have to negotiate and you might get a good interest rate.... or not.

You can also get a used car loan online. The process for a new car loan and a used car loan through Capital One Auto Finance is exactly the same. You apply online, get approved for up to a certain amount, at a set interest rate and time that you select, then you get the loan package and blank check in the mail. Make the blank check payable to the dealer and drive away in the used car.

The interest rates for used car loans are usually higher than for a new car. Rates can vary often, so you should double check the interest rate and the terms. Generally, used car interest rates range from 4.5% to 6% depending on the length of the loan. Also, if your credit rating is low, you may be quoted a higher interest rate. That is why it is important to maintain a good credit rating.

Refinance Car Loan - Depending on when you purchased your current vehicle and the interest rate and terms that you have, you might be able to save money by lowering your automobile payments by refinancing your vehicle loan.

Again, you can check with your bank and credit union to see if they offer any lower interest rates. If they do, and you still owe a fair amount on your vehicle, you might want to refinance with them. Interest rates and terms can vary greatly depending on your lender and where you live.

Another option is to check with Auto Finance companies on the Internet. Make sure that you take the time to visit several different Web sites to understand their terms and interest rates. Each online finance company might have a different process, so check around.

We recommend visiting Capital One Auto Finance and their car loan refinancing options. The process is quick, you apply online, it is free and their is no obligation. You can also see your savings right away. You will get a response in minutes. Next, once you are approved, you can review and sign your loan contract online, and there are no closing costs. After you  have signed online, they will pay off your existing loan, and send you a letter confirming that the transaction is complete. You can make your vehicle payments online at no extra cost.

Bad Credit Car Loan - If you have bad credit, meaning a poor credit rating and low credit score, it can be more difficult to get a car loan. Banks and credit unions usually won't work with you if you have a bad credit rating. It is definitely worth meeting with them to discuss options.

There are car finance companies online that actually specialize in "fast bad credit car loans". Some of them even ask if your credit score is really bad, middle of the road, or if it is good. The application process should be free and they should offer no obligation. The online application is usually quick and they usually work with dealers and lenders across the nation to match you up with the best car loan rate that your credit score will allow. Do you know your credit score?

As with any company that you deal with online, be sure to check them out. Look for any complaints about the company, and check with the Better Business Bureau to see if they are listed and in good standing.

Good luck with finding the car you are looking for. Whether it is a new model just off the showroom floor, or a dependable used car to get you back and forth to work, take the time to find the right car loan that works best for you.