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If you're thinking about buying a car, an auto loan is an important factor to consider . Unfortunately , not everyone qualifies for financing through your local dealer . Here are a few things to consider when applying:
Credit Score
The vast majority of dealerships will only finance customers with excellent credit scores. Your credit score can be checked online or by calling the lender directly. You'll need to have a score over 700 or you won't be considered for financing from dealership.
Amount Financed
The amount financed (also known as the loan amount) is the amount that you pay back on your vehicle . A common sized loan for most vehicles is about $20,000-$30,000. Some lenders may offer higher amounts than this depending on the type of vehicle you want and how much insurance coverage you need .
Length of Loan
When shopping around for auto loans, make sure that the lender you choose offers term lengths between three and five years so that they can match their interest rates with those offered by other lenders. Also make sure they offer a low interest rate because these are typically less expensive than longer term loans which often require higher rates and pretty much work .
Credit Score
The vast majority of dealerships will only finance customers with excellent credit scores. Your credit score can be checked online or by calling the lender directly. You'll need to have a score over 700 or you won't be considered for financing from dealership.
Amount Financed
The amount financed (also known as the loan amount) is the amount that you pay back on your vehicle . A common sized loan for most vehicles is about $20,000-$30,000. Some lenders may offer higher amounts than this depending on the type of vehicle you want and how much insurance coverage you need .
Length of Loan
When shopping around for auto loans, make sure that the lender you choose offers term lengths between three and five years so that they can match their interest rates with those offered by other lenders. Also make sure they offer a low interest rate because these are typically less expensive than longer term loans which often require higher rates and pretty much work .
