Auto Loan - Information

Welcome to the auto loans page. We provide information about car loans for people with both good and bad credit. Car loans are readily available online. After completing an online car loan application, you can expect an approval within a few minutes. By the next day, you can have a check in hand to purchase the vehicle you want.

This page tells you about the general auto loan process and what you can expect. If you have bad or damaged credit then we suggest you visit our Bad Credit Auto Loans page. Otherwise, keep reading...

Most online auto loan lenders work with several financing partners and they will sort through offers to automatically find the best auto loan for you. Some online lenders work through just one financing company. These tend to specialize in specific types of loans such as used car loans, loans for people with excellent credit, or bad credit car loans. With both types of car loan lenders, you can request quotes to determine who offers the best financing rates and then make your decision.

Three Auto Loan Factors: Credit Score, Collateral, Loan Terms

The three most important factors to consider when applying for an auto loan are: 1) Your credit score, 2) What collateral - if any - that you want to secure the loan with, and 3) What loan terms best fit your unique needs.

The first factor in getting a cheap car loan is your Credit Score. Your Credit Score (FICO score) can range from 300 to 850. Your Credit Score indicates your credit worthiness to a lender - in other words, your ability to meet all the repayments of the auto loan. The things that lenders consider in determining your credit worthiness include the size of your bank account, your past credit history, your current loans and credit card balances, and other factors. If you want to learn more about your credit score, read this excellent article.

The second factor in getting a cheap auto loan is Collateral. Collateral is something of value that you pledge for security in the event that you default on your loan payments. Lenders like collateral because it makes them feel more secure that you won't miss an installment payment, and if you do, that the lender has a backup. Lenders always prefer dealing with borrowers with collateral. But this doesn’t mean that you cannot get a low interest rate auto loan without collateral - there are plenty of lenders who will accept you without collateral, especially if you're buying a new car. Collateral can be any type of asset that you own - stocks, land, home equity, furniture, another car, etc. - it just needs to have some market value so the lender can sell it in the event you default on your loan.

Loan Terms are the third important factor in getting the right auto loan for you. Most auto loans range from 36 months (3 years) to 60 months (5 years) long, with a monthly payment frequency, and up front down payment. If you want to reduce the interest rate, go with a shorter loan with higher monthly payments and a large down payment. If you don't have the extra cash for a down payment or your income is too low to make high monthly payments, then you can go with a lower down payment and a longer loan term. It's really up to you, and you should compare various offers you receive and go with the one that's best for you.

How to Apply for Auto Loans Online

When applying online the application just takes a matter of minutes to complete. You will need your personal information, employment history, and loan amount desired. A smart idea is to apply for a slightly higher amount to cover any licensing fees or other costs.

After filling out the information on the auto laon application you submit your information over a secure server and your application is reviewed. During business hours, you can expect a reply in a matter of a few minutes through email or over the phone. At this point, you can decide if you want to proceed with the loan or not. When making your decision, consider each offer's interest rate, loan length, and monthly payment amount. Remember, there is no rush and you are in control, so don't be afraid to take your time and shop around. The idea is to get the loan that works best for your unique situation.

When You are Approved and You're Buying Your New / Used Car

With an approved loan application, you will commonly receive your car loan package the next day. Your package will include a check, instructions, and a promissory note. Basically, you are a pre-approved car buyer and can start shopping for your car that day. Auto loans are that simple!

With your new loan in hand, you can purchase your car through a dealership or an individual seller. You can even buy a car online through a dealer like DriveTime or or an auction site such as eBay Motors (including eBay Motors Canada, eBay Motors UK, or eBay Motors Australia) When the purchase price is settled, you enter the amount and seller's name on the check. Once you have submitted the purchase information to your lender, you are done and can enjoy your new car. It's that simple to get a loan and complete your car purchase.