Car loan Austin, TX
You have just started college, and the campus is a long way off from where you live. Unless you are wealthy before you get to college (like Dakota Fanning!) or have just been lucky by saving a whole lot for the last several years, chances are that you will definitely need to take out an auto loan to finance your car loan in Austin. Most car dealerships in Austin provide financing, but not necessarily the best deals. So where would should you go to get a car loan in Austin
Before we discuss the numerous places where you can apply for your car loan in Austin, both online and brick-and-mortar where you can go and fulfill your dream and own your own set of wheels (not quite till you pay back the loan!), let's discuss what loans are made of.
Every car loan consists of three basic components, that is the term of the loan, the interest rate levied on it, and the amount that you have to pay as an initial chunk, better known as the down payment.
Term of the loan
The term of the loan is its length. This basically means the duration you will take to pay back the loan to your lending source. One thing to keep in mind is that, the longer it takes for you to pay back the loan, the more you pay in interest.
If you have had the fortunate chance of speaking to parents and your older siblings of the best way to get a car loan in Austin, their experiences will tell you to test the waters with vendors offering 72-84 month car loans. This doesn't mean that you plan over 6 or 7 years. Personally, aim to pay back in five years or less.
Interest Rate
The interest rate basically is the percentage of the loan you're charged for borrowing the cash to finance your car loan in Austin. Your interest rate is determined pretty much by the lenders by looking at your credit history.
The APR (Annual Percentage Rate) is the best rate to use when comparing lenders. The APR is a simple measure of the finance charges you will owe on a yearly basis. The finance charges usually mean the bank fees plus the interest on your loan.
Down Payment
Your down payment is what you have in your pocket to finance the car. The larger the down payment you can make, the smaller the car loan in Austin that you will need to take out. Large down payments are a perfect way of securing ultra-flexible and favorable interest rates.
While there are ways where you can get financing for your car loan in Austin and not be required to make a down payment, but it's in your best interest to pay for as much of the car as you can up-front. Ideally, this amount should be a minimum of 20% of the price of the car.
If you are looking for a car loan in Austin, It is best to secure financing from your bank or an online lender. If the dealership from which you buy your car can match or better your bank's terms or offers a rebate as part of their financing package, then using the dealership as your lender for the car loan in Austin can be the best option. Other options can be credit unions like the Austin Telco Federal Credit Union or the Credit Union of Texas.
