Important Facts About Auto Loans

Posted: Sunday, March 12th, 2017

If you’re shopping for a new car in the St. Louis area, you might also be shopping for a new auto loan. The two go hand-in-hand, and here at Green Light Auto Credit, we’re happy to help. Unless you happen to have the cash on-hand to pay for your next vehicle outright, you’ll probably be looking for financing. Find out some important facts about auto loans before you take the plunge.

What You Need to know About Auto Loans

Customer Enjoying His New Car

If you’re looking for your next car and you need an auto loan, then make sure you understand these key facts about vehicle loans before you sign any paperwork.

  • Credit Affects Interest Rates: Your credit score will directly affect the interest rate that lenders can offer. This is one of the key reasons for credit scores. If you have a better score, you get a lower rate. That doesn’t mean you can’t get an auto loan with less than optimal credit — it just means you might pay a higher rate.
  • You Pay Less with Shorter Terms: It’s important to take into account the total amount paid over the course of the loan. You actually save a lot of money by choosing the shortest loan terms possible. While a low monthly payment might be appealing, if you can pay off a loan in three years or less, you can save thousands in the long run.
  • Down Payments Mean Savings: It can be tempting to take advantage of a no down-payment deal if it’s offered, but when you don’t put any money down on the car, you’ve got to finance the whole thing. That means you’ll pay more interest in the long run. Plus, if your car depreciates more quickly than you pay down your loan, you might actually end up owning a car that’s worth less than what you owe. A down payment can help prevent this.

Let Green Light Auto Credit Help You with a Loan

Green Light Auto Credit can help you find out all the details about auto loans to help you get the best deal possible, and we can help you get the financing you need. Our nationwide network of lenders is equipped to get you the best financing possible, and we work with customers with bad or no credit. Contact Green Light Auto Credit online now, or give us a call at (800) 200-5551 with any questions about financing a new car in the St. Louis, MO area.