An auto loan is a form of secured financing intended for the acquisition of a auto or other types of vehicles. In this arrangement, the vehicle acts as collateral, allowing the lender to reclaim it in the event of borrower default. Currently, auto loans are available in various terms, generally spanning from 36 to 72 months, with some options extending up to 96 months.
Auto loans follow most of the same rules and procedures that apply to other loans. In most cases when purchasing a auto, a borrower will specifically apply for a auto loan; however, a consumer can also use a personal loan (a loan obtained by an individual to use at his or her discretion) for the same purpose.
Get QuoteDealer financing represents the most straightforward option for obtaining financial support. It allows you to conduct both your shopping and financing in a single location. Typically, the dealer will assess your creditworthiness. Should you possess a robust credit score, you may be eligible for a promotional interest rate offered by the manufacturer, provided you engage with an authorized dealership.
Get QuoteAuto loans are provided by traditional banks and credit unions. In this case, the lender directly finances the loans, eliminating the need to work through a dealership. Nevertheless, the process may require more time compared to obtaining a loan through a dealership. Typically, one should anticipate a waiting period of one business day to a week to secure a loan from a bank or credit union.
Get QuoteYou can also apply for an auto loan online. These loans are often processed remotely, but the steps are similar to getting a car loan from a bank or credit union. It may take as little as under one business day to get approved.As a borrower, your repayment capacity and loan category determine your ideal term for a car loan. As a borrower, your repayment capacity and loan category determine your ideal term for a car loan.
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