Most adults have cars that they use to get to all the places they need to go. If you need a vehicle but do not have the cash you need to buy one, you can still purchase one. The only difference is that you must get an auto loan instead of paying cash for the purchase. If you have never had a car loan before, you might have some questions about auto loans. Here are four common questions people have when getting car loans.
1. Do You Need Perfect Credit to Qualify?
The first question you might wonder is if you need perfect credit to get a car loan. Fortunately, the answer is no. Some lenders have stricter guidelines for qualifying, but other lenders do not. You can find a car loan with almost any credit score if you look for it. If you know you have bad credit, look for an auto lending company specializing in loans for bad credit. You will find one if you look.
2. How Much Money Do You Need for the Down Payment?
The second question people ask is how much money they need for the down payment on the purchase. If you buy a car with a loan, do you need money down? The answer to this question varies, as every lender has their own rules. If you need money down, you probably will not need a lot. You might want to plan to put $500 down, but you can put more down if you have it.
3. What Happens If You Trade-In a Car with a Loan?
People with existing vehicles and loans also wonder if they can trade-in these cars if they still owe money on them. The answer is yes. You can trade-in a vehicle if you owe money on it, and the lender will roll the existing loan into the new one. If you owe more on your original car than it is worth, the lender will add the difference to your new loan.
4. How Long Should the Loan Last?
The final question people often ask is about the loan length. How long should the loan last? You can compare the payment amount differences to determine how long your loan should last.
These are four common questions people ask when buying a car with a loan. If you have questions, talk to an auto loan lending service to learn more about car loan details.