Getting on the Road with Auto Financing
Auto financing is a popular choice for individuals and families who want to get behind the wheels of their dream car without breaking their budgets. Consumer Portfolio Services specializes in helping customers buy a vehicle and make payments over a set period of time. Read on to learn more about how auto financing works and the benefits it provides.
Understand Your Credit Score
Before beginning your search for an auto loan, it’s important to understand your credit score. This three digit number is based on your credit history, taking into account factors such as debt levels, past loans and payment history. Knowing your score helps you know what kind of interest rate you are likely to qualify for, and it also helps determine whether you need to seek out subprime or near-prime lenders. Both traditional banks and specialty lenders can offer auto loans, and the best one for you depends on your credit score.
Choose the Right Loan
When shopping for an auto loan, there are several factors to consider. First and foremost, know the type of loan you need. Secured loans require collateral, such as the vehicle itself, while unsecured loans have no asset requirements. Additionally, determine the length of the loan term, whether it’s for 36 months, 48 months, 60 months or even longer. Lastly, consider the interest rate you’ll be receiving, as well as any additions such as warranties, GAP insurance and other add-on protections.
Apply for Auto Financing
Once you’ve done your research, it’s time to