How do I choose a car loan if I have multiple offers?

I've been shopping around for car loans and I have several offers. How do I choose the right one?

Answer
Congratulations; that’s a good position to be in! Choosing the right car loan is almost always dependent on the terms of the loan, but don’t underestimate your rapport with a particular lender.
That said, you should also look for a few other things that can help you decide on a car loan. Make sure to check for things such as:
  • Prepayment penalties
  • Hidden fees
  • Other benefits of a particular lender (autopay, banking possibilities, etc.)
If the interest rates between two lenders is almost negligible but you already have a relationship with the lender that has the slightly higher rate, it might be worth it to go with the higher rate. Ultimately, the decision comes down to you, but a reputable lender with a low interest rate is the best mix possible.
Make sure to also budget for car insurance, as lenders will require full coverage. Try using the number-one-rated car insurance app, Jerry, to find the best deals. Jerry compares personalized rates from more than 50 top providers and delivers the best deals to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance!
Eric Schad
Answered on Nov 24, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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