Applying for Multiple Loans at Once

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The CarsDirect editorial team is dedicated to providing our readers with the latest on new and used cars, expert opinions on which vehicles make the grade, and all the fun stuff in between.


, - May 26, 2016

If you need to buy a new car but the one you have your eye on is a little too pricey for you, a good way to get the car you want now and pay for it later is to apply for an auto loan. That sum, along with an interest percentage, is then returned to the lending party in increments over a period of time. One problem with auto loans is that they are only for a limited amount of money, so you may be unable to find an auto loan that can cover the cost of the car you desire. In this case, you will simply have to apply for more than one loan. The following is a set of instructions that will help you to apply for multiple auto loans at once.

Find the Lowest Interest Rates

Since every auto loan includes an interest rate you will have to pay, it makes sense to find the loans with the lowest interest rates to minimize the cost of the loan. The easiest way to research different auto loan interest rates is to visit websites like Interest.com to acquire information for a variety of financial institutions all in one place. This allows you to directly compare the interest rates in order to quickly find the best one for you. Make a list of the offers that look promising.

Get Quotes

Go to the websites of the financial institutions on your list. There, you will find a form to fill out and you will receive a quote. It will tell you interest rate, along with other details of the auto loan agreement that the financial institution is prepared to deal you. Make sure to get quotes from local banks and credit unions, as they will often give favorable offers.

Compare and Apply

Once you have quotes from all you selected financial institutions, all you have to do is look through them to find the offer that looks best. You should look for the offer with the lowest annual percentage rate, as this is the total amount of interest you will have to pay. Once you have chosen the best few options available, go back to those websites. There, you will find information on the paperwork you will have to fill out to apply for those loans.

In the world of auto loans, there are many good deals out there, so it's important to take your time to find the best offer. It's a good idea to invest some of your time to research multiple auto loan options for the lowest rate. It will save you a lot of money in the long run.

Of course, car loan applications are not always consumer friendly. Many times a consumer thinks one thing when the fine print states otherwise. Here are some extra facts for your convenience.

Get Pre-Approved For An Auto Loan »

Credit Matters

Car loan approval is dependent upon ones credit score, which a prepared car shopper will already know. A smart shopper will know that if their credit score is ideal, the interest rates will be low and that rate should not change over time. A person who has bad credit needs to be particularly careful when reading the fine print. A financer may approve a line of credit that has lower than usual interest rates to a person with a poor credit score. The smart consumer, if they do not have a good credit score, will need to take a look at the fine print to see if there is a chance the interest rate will change.

Some financers that offer pre-approval will guarantee an auto loan to people that have less than ideal credit. The fine print will state the great interest rate advertised will only be guaranteed to those who have qualifying credit (hence the phrase one hears in car commercials in a low, fast-talking voice: “This offer only available to qualified customers.”)

Salespeople Say the Darndest Things

A salesperson working on a car lot will convince a car shopper they will find their dream car at that particular location that will fit into one’s budget with no problem. The fine print the salesperson will not tell you is that the car of one’s dreams maybe a possibility because of the length of the loan: one may end up paying smaller amounts of interest over a longer period of time, which will really add up.

Dealerships will also claim in their advertisements that one can trade in their car even if they are not done paying it off. However, when one checks the fine print, they will see that the remaining balance is then tacked in to the amount due on the new auto loan. On top to that, a fee might be charged to do this as the financing may charge to have a balance transferred.

Rising Interest, Hidden Fees

Check the fine print to see how long an interest rate will last. For example, one can receive an interest rate of 3 percent for the first six months of the loan, but the rate will then jump up to a higher number. Phrases to look out for include: “X% Introductory APR (annual percentage rate) for purchases—then a variable APR, depending on the review of your application and credit history.”

Other loan documents will state in the fine print other pricey charges such as origination fees, taxes charged, documentation fees and penalties for making a late payment. Penalties for making a late payment can result in a higher interest rate, which can be as high as 29 percent in some cases.

In the world of auto loans, there are many good deals out there, so it's important to take your time to find the best offer. It's a good idea to invest some of your time to research multiple auto loan options for the lowest rate. It will save you a lot of money in the long run.

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The CarsDirect editorial team is dedicated to providing our readers with the latest on new and used cars, expert opinions on which vehicles make the grade, and all the fun stuff in between.


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