What type of car loan is best?

Are there different types of car loans? I'm getting a loan for the first time and I want to be sure I have the best one.

Answer
It’s good you’re exploring your options for a car loan before purchasing your car. Many people wait and end up feeling rushed or agree to terms and conditions they’re unhappy with.
The best type of car loan for you is dependent on several factors. There are several types available. They include:
  • A secured or unsecured auto loan with a dealership, bank, credit union, or other lender
  • A personal loan
  • In-house financing
If you have good credit and a low debt-to-income ratio, you’ll likely qualify for a great rate with a secured loan from a credible lender.
If you don’t have good credit, you often can still get a traditional auto loan, but your terms and interest rate may not be ideal. At this point, you could explore getting a personal loan or using a dealership that offers in-house financing.
The best way to ensure you’re getting the best loan is to shop around. Again, every lender and loan is different, so you’ll want to be sure you understand the terms and conditions before signing. If you’re happy with the loan details and interest rate, then you can feel good knowing you have the best loan for you.
Once you find the right loan, be sure to also find the best car insurance—without overpaying for it. Just like with a loan, you can shop around to determine what the best policy is for you.
For help comparison shopping quickly and easily, try Jerry. Jerry is an app that finds the best insurance rates from top providers within minutes, ensuring you’re always getting the best deal!
Emily Maracle
Answered on Oct 26, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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