What should I know when getting a car loan?

I've never had a car loan before, but I need one to purchase a vehicle. What should I know about car loans and the application process?

Answer
Getting a car loan is a relatively straightforward process if you know what you’re doing. But since this is your first time, you should keep your eye on a few things:
  • Always look at your credit report first. Know what range your score is in and if you have any derogatory remarks
  • Try to get preapproval so you know how much you have to spend on a car
  • Shop around for loans during a 14-day period. This way, there will only be one hard inquiry on your credit report (instead of one from each lender)
  • Don’t let the dealer talk you into financing before you shop around
  • Remember to factor in other costs of car ownership, including fuel, maintenance, and car insurance, before you select a car
And since you’re required to get full coverage auto insurance for the duration of your loan, don’t forget to check out the Jerry app. With Jerry, you can compare dozens of rates from top car insurers to find the best savings without compromising on your coverage.
Eric Schad
Answered on Nov 16, 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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