Today, obtaining an auto loan has become incredibly easy. Whether you are looking to purchase a brand-new car or want to upgrade your existing vehicle, auto loans are available for all. Getting a car loan is easy if you know what you’re doing and follow the guidelines.
Here are three unexpected places where you can get an auto loan.
Your Credit Card or Checking Account Provider
Several modern financial institutions offer auto loans to their customers. With so many available options, it becomes tough to find the right one. Start by applying for an auto loan with a bank you’re familiar with. You can easily access your preferred bank in a few clicks. They also know your payment history, and you already have a relationship with them.
However, ensure that you don’t default to the first bank you talk to. Some institutions carry out a soft credit check and offer an auto loan rate query. You can do a couple of these and start developing a budget. Once this is done, make a list of potential lenders.
Once you’re ready to pre-apply for financing, you can send in several applications at once. These will be regarded as hard queries that will affect your credit score.
A Credit Union
Today, credit unions are one of the most underappreciated financial institutions. While big banks pay shareholders with the money they get from their customers, in credit unions, shareholders are the customers. This structure ensures that a credit union serves its customers well. For an auto loan, this often translates into a lower required credit score, a smaller minimum loan, and lower interest rates.
Earlier, it wasn’t easy to join credit unions. However, now, the internet has made them easily accessible. Some credit unions are based on your trade or veteran status, while others depend on where you live.
Department of Agriculture Truck Loan
Farmers are familiar with the low-interest-rate loans with favorable terms offered by the United States Department of Agriculture (USDA). Since the USDA mortgage requires no down payment, most rural homebuyers prefer this option. Most people don’t know that the USDA might also finance your next truck.
Farmers who transport commodities they produce can receive a USDA loan to purchase a new truck. This loan is called the Farm Storage and Facility Loan. To avail this loan, you have to be a farmer transporting farm produce, and your truck has to be specifically designed to do so. While this rules out pickup trucks, you could buy a compact truck or a chassis truck. Additionally, you may also be able to finance a box truck or a cargo van.
