How Do I Find the Best Car Loan?

We at Mark Wahlberg Chevrolet know how important it is to find a car loan that fits your needs. To help you do just that, we’ve put together this guide with all kinds of information about how to find the best car loan for your needs. Shoppers in the areas of Columbus, Grove City, and Dublin should read ahead to get started!

1. Establish a Budget.

Before you even start looking for a car loan, you need to establish a budget. It’s recommended that you spend no more than 20 percent of your monthly take-home pay on your monthly loan payments. However, this can be adjusted based on your existing expenses.

You’ll also want to consider how much you can put down for a down payment. You’ll want to put at least 15 percent of the vehicle’s total price down at the dealership.

2. Get to Know Your Credit History.

Once you have a budget put together, you’ll want to take a look at your credit history. Start by using one of the free online credit estimators like Credit Karma™. If your credit score is above 750, you don’t have anything to worry about. If not, you’ll want to order your whole credit report and investigate it for:

• Incorrect information or errors that can be fixed
• Signs of identity theft, like accounts that aren’t yours
• Accounts that are yours but aren’t being utilized
• Debt that can be paid off in order to improve your score
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3. Shop Around.

You should look around at all the potential lenders in your community to see what kind of rates are available for you. However, you’ll want to keep the application process short and sweet—under 14 days, to be exact—because each application will create a hard inquiry on your credit history.

Additionally, you should be shopping for the total amount you intend to borrow, rather than the monthly amount that you’ll be paying. Smaller monthly payments usually mean longer loan terms, so you’ll be paying it off longer than you anticipate.

4. Understanding the Terms.

A typical car loan is made up of several types of payments including a down payment and monthly payments. However, there are a few other types of payments and fees that you can expect depending on where you get your loan from, including:

• The variable interest rate
• Prepayment penalties, which are fees you pay if you want to pay off the loan early
• GAP insurance to keep you covered at all times
• Extended warranties which cover whatever the manufacturer warranty doesn’t

Still Have Questions about Car Loans?

We at Mark Wahlberg Chevrolet are thrilled that you stopped by today to learn more about how to find the best car loan. At our finance center, we have a team of friendly financial experts who are ready to help you find the best car loan possible. Shoppers in Columbus, Grove City, and Dublin should give us a call today to schedule a time to come in and meet the finance team!