Which type for you?

Some things to consider when shopping for your next car / auto loan.

There are many "configurations" of loans with various length, fees, interest rates, etc. We are here to help! Here are some various scenarios and types of loans to consider including some tips regarding the type of car you may be purchasing.

Some factors in choosing financing :
1. How long do you plan to own the car?
-- Do you usually get a new car every year or every 5 years?
2. Do you purchase through a dealer?
-- Or do you plan to purchase from private party?
3. Are you a member of a credit union of some kind?
-- Usually a credit union can offer better rates to members.
4. Do you have a good credit score?
-- Those with better ratings get better interest rates.

How should any of this affect your decision?

If you plan to own your car for only a short time you should avoid dealer incentives such as no payments for a specified amount of time. Then when you go to trade in the car you won't be upside down.
If you buy from a dealer you can decide if you want a rebate or special financing if offered by the dealer.
If you are a member of a credit union you can enjoy low fees to obtain the loan and possibly lower interest rates. Although, don't forget to check around online! Online lenders can have the lowest rates due to low overhead.
If you don't have good credit you may find yourself shopping around at higher interest rates. You may want to consider a private loan or even paying cash for the car if possible.

Related Article: Credit Score Impact >>