There usually comes this point and time where we’re all ready to move on from our first car. That usually means it’s also time to apply for a brand new auto loan. For some, this is our first time going down this road and auto loan rates vary depending on who you go to.
With DEXSTA just recently dropping all of our vehicle loan rates as low as 3.49%, this is a great time to start thinking about your future life spent on four wheels.
Here’s what you can expect from the car loan process and how it pertains to you.
Check Your Credit History
It all starts with figuring out your credit history. Before inquiring about an auto loan with a lender, it’s essential to provide yourself with as much information as possible. Check your credit score for free online and figure out how you stack up with auto loan rates.
Where Do I Get an Auto Loan?
Most major lenders have auto loans available. Auto loans are much easier for them to manage than home loans as it’s easier to reclaim your purchase if something goes wrong.
Agree to a Down Payment
Now, it’s time to show the lender how much you’re willing to contribute to the down payment. However much you’re willing to put down initially down will reduce the principal of your auto loan immediately. Instead of paying more interest to your lender, set up a loan term that will save you both money and peace of mind.
Get Pre-Approved
It’s vital to make sure you get pre-approved for an auto loan before going car shopping. You’ll not only have a larger bargaining chip, but you’ll also be more likely to stick to your budget. Plus, it relieves you of the stress of having to negotiate a fair auto loan with your dealer.
At DEXSTA, we’ve taken note of this. That’s why we offer pre-approval options for car loans before you shop.
Let’s Talk About Interest Rates
What you have to pay for interest on your auto loan may depend on a myriad of different factors. According to the 2019 FICO report, the average interest rate for folks with an excellent interest rate on a 60-month loan was 3.6%. Compared to an average credit score with a 9.72% interest rate, that’s pretty significant.
Bottomline
After checking your credit score, you can start factoring in a lower-debt-income ratio, a shorter loan term with a higher down payment, and whether the car you’re buying is new or used. Once you’ve checked all of these boxes, you’ll have a better idea of where you stack up with auto loan rates. If you can get yourself that far, you’ll be that much closer to picking up the keys to your new car.
Wondering where to shop? DEXSTA partners with 20 different local car dealers working hand-in-hand with them so that you’ll receive your car loan without having to open an account with us before you shop. Check out our list of dealership partners to apply for a DEXSTA Federal Credit Union auto loan and find your next car all in the same day.
Once you’re ready for the big commitment, contact your DEXSTA representative and apply for a car loan today.