New Car Loan

If you need a new car loan there are several new car loan options and it is important to consider them all to find one that best fits your needs and budget.

Dealership Car Loans
Dealerships that sell new cars also provide new car loans. The biggest advantage to these loans is convenience. You can buy your car and get your loan in the same place. Additionally, dealers typically have relationships with multiple banks so they can help you find an attractive new car loan.  The downside of working with the dealership for financing is that it can complicate your negotiation of the vehicle purchase price.  Make sure you finalize the sales price for the vehicle before beginning to talk about financing.  

Home Equity Car Loans
Another new car loan option is a home equity loan or a line of credit. A home equity loan allows you to use your home as collateral to purchase your new car. The interest on these loans is tax deductible, and they tend to have lower interest rates. The biggest downside to these loans is that you are using your home as collateral.

Bank, Credit Union and Financing Company Car Loans
The most common new car loan option is to use a bank, credit union or financing company. These lenders provide the lowest rates and have no direct interest in the sale of your new car. You can shop around and negotiate the best deal for yourself since there are many of these lenders. However, these loans are the hardest to secure since they have the highest credit standards.

• We recommend you obtain an accurate copy of your current credit report before you look into getting a new car loan. Experian, Equifax and Trans Union are the three main credit reporting agencies. Each of these agencies will supply you with one free credit report a year. You can get this report at AnnualCreditReport.com. It will be difficult to obtain a new car loan without good credit, so if your credit score is below average consider waiting and building up your down payment and improving your credit score before applying.
• Decide what you can afford. When you are calculating what will fit in your monthly budget you should also factor in gas, average repair costs as well as new car insurance premiums. You can find insurance cost information at Progressive.com, IntelliChoice.com or Insweb.
• Now you are ready to apply for your new car loan. In addition to applying at your local bank and credit union, you should check online. Many online car loan companies allow you to look at several loans at once. Try LendingTree as well as CarsDirect.

CarsDirect New Car Loans
When you buy a new car through CarsDirect, you not only get a great price and superior customer service, but the opportunity for excellent terms on a new car loan. A Vehicle Specialist will help you compare car loan offers to help save you money. The service is quick, free of charge, and no obligation. In many cases, we can arrange financing on a car loan in a matter of minutes. Start the process of financing through CarsDirect by going to the new car prices channel.