| There are 3 ways to get an auto
loan, i.e. through:
- Car Company Finance. (i.e. through car Dealer)
- Credit Unions.
- Banks.
Car Company Finance: First check with the car dealers,
if they have any attractive auto loan scheme. Normally,
all the car companies have such schemes running from
time to time, either on all the models or some specific
models, specially on some holidays. These deals are
normally better than the other two options, as you might
get rates like 0% to 4.9% APR. In case you are getting
such a deal, then the dealer will take care of all the
document work.
It is possible that such scheme might not be available
for the kind of car and model you are looking for. In
that case, you are dependent on Credit union, or Banks
for the auto loan.
Online Finance companies like E-LOAN Credit Unions: Credit Unions are the most popular
and reliable source to get an auto loan, specially if
you are a first time buyer, as banks normally don't
give auto loans to the first time buyers easily. Credit
Unions are significantly useful to approve your loan
fast and with competitive rates.
In order to avail this service, one has to be a member
of Credit Union. Normally, there are few terms and conditions
for the membership of such Credit Unions. In most of
the cases, if your employer is a registered corporate
member, then you become eligible to get this membership.
Other then Auto loan you can also avail the facility
of having a checkin and saving account with these Credit
Unions. Credit Unions also provide credit cards without
much of a hassle.
Few known names of Credit Unions are: DCU,
TCU,
and Patelco
Though the functionality is same as the banks, but
services are limited to the members only. Facilities
and interest rates also vary from Credit Union to Credit
Union. To know more about their services and rates,
visit their web sites, and discuss their reliability
with your friends before joining them.
You can be a member of more than one Credit Union. Banks: Banks should be considered as the third choice. It
is difficult for a new comer to get a loan from any
bank. Banks loan rates are normally higher than the
other two options.
Once your loan is approved by either of the aforementioned
means, you will be liable to pay some amount as an installment
against your loan. Normal terms (simple interest payment
or compound interest payment) are 24 months, 36 months,
48 months, 72 months etc. As installment grows, so will
the APR (Interest). You may choose the best term for
you. **Remember, the faster
you get rid of your loan, the better it is. But at the
same time, to make a good credit history, you should
not pay it off before 6 months atleast. 
Do's
- Talk to atleast 2-3 car dealers, don't rely on
one dealer's words.
- Always compare rates among various Credit Unions.
- If you have direct deposits for your salary to your
credit union account, you might get better interest
rates. Inquire about these options.
- If at all you have to take loan from a bank, then
talk to 3-4 banks and insist on better rates.
- Discuss with your friends about your car loan deals,
before finalizing it.
Don'ts
- Don't forget to do the bargaining even with the
credit unions, insist on better rates.
- Don't forget that refinancing
is always possible
What
is Refinancing? If you are not satisfied with your
current financial organization services or rates, you
can anytime go for refinancing it through some other
financial organization. This option is really helpful,
as you might find better interest rates and terms from
time to time, with different loan providers. For more
details visit Auto re-financing
page. What
is Credit History? In US, each individuals financial
history is maintained, and can be traced out through
his records. This information is centrally available
with government authorized credit report agencies, and
can be requested in order to prove your good/bad buyers
record. If you are new to US, there is no question of
having a credit history, it gets maintained with your
stay in US. Such credit history normally contains, records
of all your major expenditures made by you, using your
credit cards or any specific loan. Any failure to pay
back your loan, rent or any bill etc., might lead to
a bad credit history, resulting high rates or refusals
for any other credit card, loan, rental apartment etc.
| Links |
Information
available |
| MsnMoneyCentral
|
Good information on Car loan and other finance
related |
| Finace.com
|
Useful tips and information on Credit cards
related. |
|
