Auto

Best Auto Loans 2020

EPF Last Update: May 23, 2020

The good news is that people with good credit can get super cheap auto loan rates. If you are with bad credit still there are options for you, but they are limited.

ElitePersonalFinance conducted a study and found the best auto loan companies.

Amount

$250 – $500,000

APR

2.99% – 21.99%

Credit Score

640

Amount

Min $5,000

APR

3.99% – 24.99%

Credit Score

500

Amount

$1,000 – $50,000

APR

3.99% – 35.99%

Credit Score

500

Amount

Min $7,500

APR

2.49% – 29.4%

Credit Score

500

Amount

Min $7,500

APR

4.15% – 24.99%

Credit Score

540

Tips for When it’s Time to Buy a Vehicle

After you’ve done all your planning and research, you’re ready to put it all to use. Here are some things to keep in mind as you make your purchase:

Don’t Move out of Your Price Range

Any little bit extra tacked on to what you were planning to pay could end up costing a lot in the end. Your payments will grow exponentially if you accept a high interest rate. You went through the work of making your budget. Stick to it.

Don’t be Afraid to Deal

It can seem like an intimidating proposition to some, but if you did the research, you already should know both what a car is worth and what you’re willing (and able) to pay. If the vehicle you need is out of your price range, do what you can to get it in your range. If it’s already in your range, try to get it lower if your research justifies it.

Any little bit now can save you a lot in the long run. Because of your bad credit score, you most likely won’t be able to negotiate the terms of your auto loan, but you can always try with the purchase price.

When you know your budget, you’ll also be better prepared to haggle. Simply be firm about what your max price is, and try to talk the dealer down to it. You have nothing to lose!

Be Careful with Add-on Products and Services

Oftentimes, after you’ve already shaken hands and agreed to a purchase price and loan terms, you will be offered additional products and services before you sign a contract. Most likely, these were not included in the price quoted. If you agree to any of them, the cost will be added onto the previously-agreed cost of the car, which means it raises the amount of your financing.

And because of the higher interest rates associated with that bad-credit auto loan, those products or services could significantly increase the cost of your monthly payments. Know the value of these services and whether they fit into your original budget before agreeing to any of them.

Read The Contract and Ask Questions

It’s conventional wisdom that is too often unheeded: Don’t sign anything until you read it, and don’t be intimidated by a wordy contract.

You know your financial situation and your needs better than anyone. If you’re unsure of something in the contract or you have any questions, ask. And if you don’t feel comfortable for any reason, don’t sign. Once you sign the contract on the auto loan, you’re legally obligated to fulfill it.

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