If you are looking to buy a new car, you may need to rely on a financing option to make the transaction. Fortunately there are many options for a variety of credit scores. Here are some of the best car financing options available.
Whether you buy used or new, many dealers can offer you good financing options, sometimes with a capped monthly payment. Dealer credit requirements may be lower than your bank's requirements, and some dealers offer financing without a credit check.
Rent to Own
Rent to own auto loans are like a dealer financing loan in many ways, except you aren't committed to buying the car. Essentially, you are renting the car at a stable monthly rate, and if you are able to pay off the full amount up front or through consistent rental payments, then the title will be transferred to you.
Sometimes only a portion of your rental fees can be applied towards the cost of purchasing the vehicle outright, so check with your dealer ahead of time to clarify the terms. This is a great option if you are willing to not fully own the car while you're trying out a model and making sure it's the right decision. You might want to try out several new models before committing to one brand. For more information on how rent-to-own agreements work, contact a dealer like Rent To Town Autos.
Another option is to go through your bank for an auto or personal loan. Even if you've been denied for a personal loan before, you may be able to get approved by using the car as collateral to your loan. A bank loan may require you to have a stable source of income or down payment ready to complete your purchase.
Some car manufacturers offer loans straight from the source, so it can be helpful to compare the loan rates offered by your dealer and the manufacturer itself. Some buyers still choose to go through a dealer, since they can offer personal and local service in case you have any problems with your purchase. Manufacturer loans are also usually applied to new cars; if you're looking for a used car, you'll probably need to stick with the dealer.
How you choose to finance your car may depend on your credit history as well as the down payment that you're able to make. Your dealer will be a great source of information, since the dealer can help you communicate with potential lenders and weigh your options.