Loan Calculation Results
About Auto Loans
What is an Auto Loan?
An auto loan is a type of installment loan that allows you to borrow money to purchase a vehicle. The loan is secured by the vehicle itself, which means the lender can repossess the car if you fail to make payments.
Interest Rates
Auto loan interest rates vary based on your credit score, loan term, the age of the vehicle, and the lender. New cars typically have lower interest rates than used cars. A higher credit score generally qualifies you for a lower interest rate.
Tips for Getting the Best Loan
1. Check your credit score before applying
2. Get pre-approved from multiple lenders
3. Make a larger down payment to reduce your loan amount
4. Choose the shortest loan term you can afford
5. Consider total cost, not just monthly payments