Car buyers who want to get a car loan today may want to examine their financial situation first before making any decisions. There are different options available for consumers that have different credit scores and income may also play a large factor in the best option for them. Those who need to know where to get a car loan should consider all of their options so that they get the best deal, not just the fastest one.
What to Do Before the Purchase
Before financing a vehicle, most car buyers will want to check their credit score and their monthly budget. A borrower's credit score will have a significant impact on their options for getting approved for auto financing today, and people should always inspect their monthly budget first to determine how much they want to spend. This will avoid the borrower becoming attached to a vehicle that is outside of their monthly budget later on.
Borrowers with Excellent Credit
Once a person has a good idea of their credit score they can consider their options. Borrowers that have excellent credit may be able to go to a bank or credit union to apply for a loan. However, people need to be aware that it can be very difficult to obtain a instant auto loan at one of these traditional lending institutions even if their credit is extremely good. Most loans will take at least two or three days, which means that a borrower that needs a car immediately may need to consider other options.
Borrowers With Less than Excellent Credit
Borrowers that do not have excellent credit are not likely to be approved for a traditional loan, or it may take a while for their loan to go through. Luckily, there is another option for those who do not have excellent credit. Those with even very poor credit can consider getting a bad credit car loan directly through an automobile dealership. Not all auto dealerships offer financing options on the lot, but many of them do.
How Dealership Loans Work
A dealership that offers on the lot financing will be able to approve virtually any borrower for a same day car loan. These car loans usually come with better terms than bank loans because borrowers can set their own terms of repayment and can negotiate on the interest rates and down payments. Many of these loans require no money down, and can get the borrower into a vehicle immediately. This is often the only way for a borrower that has very poor credit to get a vehicle. Auto dealerships also offer very competitive rates.