To obtain auto financing online, start by using a search portal like the one at Bankrate.com, Consumer Reports advises. Simply enter the type of loan you're seeking, your zip code, the portal returns loans that are offered in your area.Continue Reading
The Bankrate search portal returns both local options as well as national options, Consumer Reports explains. When shopping for auto loans, the figure you should focus on is the annual percentage rate, which varies daily. A lower rate can provide long-term savings.
When shopping for an auto loan it's important to compare the monthly payment and the total cost of financing, states Consumer Reports. A shorter term means the monthly payments are higher but the money paid overall is significantly less.
An important factor in long-term loans is how long it takes to build equity in the car. With a 60-month loan, it could take 18 months of payments or more before the car is worth more than the balance owed. If you want to sell or trade in your vehicle early, the price you get for the sale won't cover the amount of money still owed on the car. This is called being upside down, and the best way to avoid this is by taking out short-term financing, advises Consumer Reports.Learn more about Credit & Lending