When you need or just want a new vehicle, your choices will depend on the finances you have available. The better your financial position the more likely it is to get the vehicle you desire. There are a variety of ways to obtain financing to purchase a car. They can help you get the $$ you need quickly, regardless of your credit.
New and used car dealerships will usually offer payment plans for any type of vehicle. Some dealers offer the credit through a bank and some will offer credit through the manufacturer. When it comes to financing your car through a dealership you should read the fine print very carefully. There may be hidden terms and conditions that make a loan that looks appealing turn out to be a bad choice. In the case of defaulting on a loan, a dealership may act more quickly on repossessing your vehicle.
Manufacturers and dealerships can offer many incentives for obtaining your car loan through them, some will even offer zero percent interest rates. Again, you should check the terms completely before making your final decision. New car loans through dealerships are usually set for 60 months of payments. Seventy-two-month loans can be obtained on higher-end vehicles. Remember that the longer the term of your loan the more interest you end up paying.
When obtaining financing through a car dealership you should also check to see what their insurance requirements are. Some dealerships may want you to insure your vehicle through their own insurance provider and this could cost you more than insuring through your own provider.
Banks or credit unions:
Banks and credit unions are also sources for obtaining car loans. If you are a member of a credit union you may find that they offer special loan rates to members and they may be easier to work with. Regular banks can have more restrictions. Many banks will not offer loans on used vehicles. However, if you have an account in good standing with the bank your chances of obtaining a loan at a good rate will be significantly better.
You may also be able to get a personal loan from a bank to finance your car. A personal loan will differ from a car loan but can provide the means for purchasing a used vehicle. Having a co-signer may be needed if your credit is not strong or if you have not had any type of loan before. A co-signer guarantees the bank that the loan will be paid if you end up unable to pay it yourself. If you think you will be in a position of needing someone to co-sign for you, ask them before you even begin negotiations. This will put you in a better position to obtain financing.