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The auto loan-to-value (LTV) ratio is one of many factors lenders use to evaluate your creditworthiness. While auto lenders tend to be more flexible with LTV compared to mortgage lenders, it’s still important to be mindful of how much you’re borrowing relative to the value of the car you’re buying. If you’re planning to take […]
Auto Loan-to-Value Ratio Explained Read More »
Buying a motorcycle may not cost as much as buying a car. Unless you’ve been saving diligently so you can pay cash for it, however, you’ll still likely need to finance your purchase. The cost of a new motorcycle starts at around $5,000 and can be as high as $35,000, according to Altus Motorsports. Higher-end
Do You Need Good Credit to Finance a Motorcycle? Read More »
You can have two car loans. As long as you’re legitimately approved for them, there is no limit to the number of car loans you can have. However, lenders can deny additional loans if factors such as your credit score or debt-to-income ratio (DTI) don’t fit their requirements. There are steps you can take, such
Can I Have Two Car Loans? Read More »
Trading in a vehicle that you still owe money on is a relatively simple process. Dealers will be happy to work with you on it and do most of the legwork. However, the process can be more complicated if you owe more than the vehicle is worth. If you’re thinking about trading in a financed
How to Trade In a Financed Car: Here’s What You Should Know Read More »
It’s possible to get approved for a car loan with no credit. However, unless you have a cosigner to help you, your options may be limited and expensive. Here’s what you should know about how your credit comes into play when applying for a car loan and what your options are if you have no
Can You Get a Car Loan With No Credit? Read More »
Being involved in a car crash is bad enough, but it’s even worse if your car insurer declares your vehicle a total loss. This decision can happen if your auto insurance company determines your car is unfixable or the cost to repair it is more than it’s worth. In either case, the outcome is usually
Total Loss Settlement Process: How Long Does It Take to Get a Check? Read More »
There’s nothing quite like the thrill of buying a car, especially if it’s brand new. However, the decision of when to buy ultimately depends on your financial situation. Here are some auto trends to help you decide when is the right time to buy a car and whether 2025 is a good year to do
Should You Buy a Car in 2025? Read More »
It’s generally recommended to put some money down when buying a car using an auto loan, but it’s not always required. There are a handful of ways you can buy a car with no down payment, such as improving your credit score, trading in your current vehicle, comparing lenders and more. That said, it’s also
How to Get a Car Loan With No Down Payment Read More »
Should you buy a used car or a new car? The answer depends on several factors, including your budget. The average monthly payment for a new car is $209 more than the average monthly payment for a used car, according to Experian’s State of the Automotive Finance Market report from the second quarter (Q2) of
Used Car vs. New Car: Which Should You Buy? Read More »
Buying a car is a big financial decision, whether you’re purchasing a new vehicle or a used car. Auto loans are available from car dealerships, banks and credit unions—and credit unions might offer better interest rates than other options. That could translate to big savings over the life of your loan. If you’re in the
Do Credit Unions Offer Better Rates on Car Loans? Read More »
When your auto lease term is over, you generally have the option to buy the car instead of returning it to the dealer or leasing company. If you can’t afford to pay cash for the vehicle, an auto lease buyout loan can provide the funds you’ll need to purchase your leased vehicle when the term
What Is an Auto Lease Buyout Loan? Read More »
Electric vehicles (EVs) continue to rise in popularity, making up 8.35% of new car purchases in the second quarter (Q2) of 2024, according to Experian’s State of the Automotive Finance Market report. But, as rising vehicle prices and high interest rates make buying a new EV potentially cost-prohibitive, many car buyers are turning to leasing
Leasing Is the Most Popular Way to Pay for an EV Read More »
If you’re in the market for a used car, there’s a good chance you’ll choose to take out an auto loan. Roughly 42% of used vehicles are financed, according to Experian’s State of the Automotive Finance Market report from the second quarter (Q2) of 2024. The average used car payment in 2024 is $525, which
Average Used Car Payment in 2024 Read More »
On average, borrowers with subprime credit scores had an average interest rate of 13.18% on new car loans and an average used car loan interest rate of 18.86%, according to Experian’s State of the Automotive Finance Market report from the second quarter (Q2) of 2024. If you have bad credit, you’ll likely receive a higher
Bad Credit Car Loan Rates for November 2024 Read More »
In 2024, more new electric vehicle (EV) buyers are deciding to lease rather than buy: 46.6% versus 36.8%, according to data from Experian’s State of the Automotive Finance Market report from September 2024. The reasons consumers are preferring to lease could be many. For instance, leased EVs have a lower monthly payment on average, Experian
Should I Lease or Buy an EV? Read More »
If your car needs repairs that you can’t afford to pay for upfront, an auto repair loan can help you finance the costs. Although it’s a commonly used term in marketing, an auto repair loan is actually a personal loan that you use to pay for auto repairs. Loan amounts and repayment terms vary, so
What is an Auto Repair Loan? Read More »
It may sound too good to be true, but getting a car loan with a 0% annual percentage rate (APR) is possible. However, not everyone will qualify for no-interest financing, you’ll still be responsible for other costs and 0% APR loans may only be available on certain makes and models. If you’re in the market
How to Qualify for a 0% APR Car Loan Read More »
When it comes to getting a car loan, you typically have two main choices: a bank (or credit union) or a dealership. While dealer financing has its perks, financing through a bank or credit union allows you to sidestep the dealer as a middleman and secure a loan before heading to the dealership. One strategy
Should You Get an Online Auto Loan? Read More »
Car loans allow you to borrow a lump sum of money to buy a vehicle now, then repay the loan over time. Because a car is likely to be among one of the biggest purchases you make, knowing how to secure financing is key. While you can speed up the process by having the dealer
How to Get Approved for a Car Loan Read More »
Your credit score is a critical factor in determining your eligibility for an auto loan and your potential interest rate and other loan terms. On average, a new car buyer with an excellent credit score can secure an average interest rate of 5.25%, but that average jumps to 15.77% for borrowers with poor credit scores.
Average Car Loan Interest Rates by Credit Score Read More »