Car Loan Dealers

Shopping For A Car Loan
By Terje Ellingsen

Let's say you have decided to purchase a new or used car and
that you need to prepare for some shopping for a car loan. The
first thing to do is obviously to decide whether you're going
to buy a new or used car, then which make and model you would
like to purchase. The third question you need answered is how
much it cost, and finally what loan amount is needed to finance
it: If you could sell your old car, you do not have to borrow as
much as the car cost.

Now to find the amount of the auto loan you need you just
subtract the amount you expect you can take for your old
vehicle, if you want to sell it. Finally you can start to shop
around for the best automobile loan terms. You should look at
all kinds of vehicle loan lenders such as banks, credit unions,
and private moneylenders.

Which criterias should you look for when comparing the loan
terms of various motorcar loan lenders? First, take a look at
the car finance institution. Is it known for good service, lack
of fraud and other complaints? Have any of your family members
or friends had any experience with the loan company? If yes,
are their experiences good or not so good? Do you know anybody
else who can give you a reference on this car lender? It is
mandatory that you choose a car loan company that is serious.
And since not all of them are, you'd better be on the alert.

The next criteria is the APR or annual percentage rate of the
auto loan. This tells you which amount of interest you have to
pay per year as a percentage of what you owe. It goes without
saying that this is one of the most significant elements in the
car lender selection process, since this is probably the single
factor that impacts the car loan costs most. The time it takes
to pay back the loan is also relevant and important as in
determining the amount you have to pay for your vehichle loan
per month. Calculate the monthly payment if it's not already
done in the offer you have received.

An important thing to take into account is the fees that the
lender adds to the loan. You need to know how much this is both
monthly and for the total loan. After you have got these figures
you are able to calculate the exact monthly payments of your
vehicle loan plus the total finance charge over the lifetime of
the loan. Also calculate the total amount that you have to repay
for the loan, If you not already have got this figure.

With these figures you are now able to compare the offers from
different lenders. Only you know which criteria is the most
significant for you and which features are most appealing
compared to the others.

About the Author: Terje Brooks Ellingsen is an internet
publisher. He runs the website
http://www.cheap-used-cars.w-eland.com Terje gives advice and
helps people with automotive and financial issues like auto
financing, see
http://www.cheap-used-cars.w-eland.com/used_car_loans.htm and
auto insurance, see
http://www.cheap-used-cars.w-eland.com/cheap_car_insura

Source: http://www.isnare.com