Frequently Asked Questions about Auto Loans

Here are the answers to the most commonly asked questions about auto loans.

What are auto loans?

Auto loans are a form of vehicle financing where you borrow money to purchase a new or used car. Auto loans can come from banks, credit unions, or directly from the auto manufacturer. Auto loans may also come in the form of refinancing loans, where you pay off an existing loan with a new loan to reduce your interest rate.

How do I get quotes on auto loans?

Getting quotes on auto loans on our site requires that you fill out our free sign-up form. Give us your name, email, phone number, etc., and we will instantly display up to five free quotes on car loans. You will see your quotes right next to each other to help you compare offers quickly. If you see an auto loan you like, you can apply for it on that lender's site. If you want to think it over, you can also save the quotes and come back any time.

Do you issue auto loans?

No, we are not a lender. We are just a free matching service that provides online quotes to our visitors. We collaborate with many lenders from around the country, but we do not actually provide your loan.

Can I get a used car auto loan through this site?

Yes, our lenders offer both used and new auto loans. You can also refinance your existing auto loan.

What kind of a down payment should I make?

How large your down payment should be will depend on the value of your trade-in, if you have one, and how urgently you need a car. A good rule of thumb is to make a 20% down payment to cover depreciation costs in the first year. If you have a valuable trade-in, you may be able to reduce the amount of your down payment. On the other hand, if your need for a car is immediate and you don't have the cash to make a 20% down payment, you may want to buy your car and just deal with the higher monthly payments.

Won't I get a better deal if I finance through the dealership?

Dealership auto loans have notoriously high interest rates because you have two parties involved who both want to make a profit: the bank and the dealer. The dealer will inflate whatever interest rate the bank provides in order to profit off of the financing deal. Thus, you will save more if you just get an auto loan directly from an independent lender.

 

Now that you have a better understanding of auto loans, you can prepare for auto loans.