Could Consumer Reluctance Lead to Great Auto Loan Deals?

[Sep 11, 2009.]

 

The Los Angeles Times reports that US consumers have cut debt by $21.6 billion during July. This represents the largest decline since the Federal Reserve began keeping records in 1943, and the sixth consecutive month that consumer debt rates have fallen  Continued worries about the economy and job security has consumers sitting on the sidelines rather than spending weekends at the mall or visiting auto dealerships. As the new model year approaches, it's likely that automakers and dealerships will be offering compelling incentives to lure buyers back to their sales lots.  While some prospective buyers can wait for better times or auto loan terms, what happens if you can't wait?

Getting a Fast Loan with Good Terms

So your ride has died., and you need a fast loan. You weren't planning to buy a car, and have little money, but need a car right now. If you're in a desperate situation, it's still worthwhile to shop auto loans online. Check with your bank or credit union, and with online auto lenders that can provide quotes in a few minutes.

Shopping Auto Loans Online

Even the most dire circumstances require time for shopping and comparing prices on auto loans. Getting a fast loan is possible, but getting a bad deal is also possible. Don't let unscrupulous lenders take advantage of your need for a fast auto loan.

Get several quotes from different sources.  This gives you an idea of how much you can afford to spend on a car.

• Review loan terms and factor in additional costs: Don't automatically select the loan option providing the largest amount. Consider your budget, and what you can afford for monthly car payments, higher auto insurance costs and vehicle registration. 


• Remember to check APR: Quotes for auto loans should include the annual percentage rate (APR), which is the amount of finance charges you'll pay for your auto loan expressed as an annual percentage.  The lower the APR, the less your auto loan will cost.


• Take your best auto loan quote along when visiting dealerships: This assists in comparing in-house financing offers, and can also help in avoiding a split second decision that costs too much.


• Weigh purchase incentives against the total cost of an auto loan: Dealer incentives are great, and can help you get into the car you want, but remember to carefully compare in house auto loans with other auto financing options.

These tips can help you get a new car with a fast auto loan that you won't regret.

 

About Author:

Peter Andrew has been writing about -- and for -- business for more than two decades. For the last couple of years, he has found himself increasingly specializing in the U.S. financial sector.