Expert Advice for Car Financing

All Articles on Car Financing

Consumers Are Borrowing More Money to Drive Expensive Vehicles
A study on the auto credit market shows that consumers are financing vehicles longer and borrowing more to drive larger vehicles like SUVs and trucks. But, this probably isn’t something to worry about since on average, credit scores are also improving.
avatar
Nelly Bellamy
Sep 20, 2021
Don't Fall for the Most Common Mistake People Make When Financing a Car
Financing a car can be a confusing and stressful process. Whatever you do, don't get suckered into signing an agreement that is longer than it needs to be.
avatar
Andrew Koole
Jun 08, 2021
How to Get Preapproved for a Car Loan
When you arm yourself with a pre-approval from a lender, you're much more likely to get a good deal on both your car purchase and your auto loan.
avatar
Brady Klopfer
Sep 01, 2021
What Is the Average Interest Rate on a Car Loan?
Knowing the average interest rate for a car loan will help you understand if you're getting a good or bad deal from your lender.
avatar
Brady Klopfer
Jan 12, 2021
How to Sell a Car with an Existing Loan
If you're still stuck paying a car loan and want to sell your car early, don't worry: you can still sell your car, as long as you work with your lender so the buyer can pay the right party.
avatar
Brady Klopfer
Sep 01, 2021
What Is Collateral Protection Insurance (CPI)?
Collateral protection insurance (CPI) is usually more expensive than standard car insurance and should be avoided. Here's what you need to know about CPI coverage.
avatar
Jason Unrau
Nov 25, 2020
How to Tell if Financing a Car Will Affect Your Car Insurance Rates
Qualifying for a car loan typically comes with certain requirements, which can have an impact on auto insurance rates.
avatar
Logan Utsman
Oct 20, 2020
How to Pay Off a Car Loan Faster
Refinancing, bi-weekly payments, rounding up loan payments, and putting any extra cash towards your payments are the best ways to pay off your car loan faster.
avatar
Rochelle Miller-Hernandez
Sep 01, 2021
How to Refinance a Car
Refinancing a car is as simple as contacting your original lender, finding a new financier, and selecting a refinance plan that works for you.
avatar
Brady Klopfer
Sep 07, 2021

All Questions on Car Financing

What are some basic tips to get a good deal on a used car?
I want to buy a used car, but I know that dealers are notoriously dishonest. What are some basic tips that I can use to get a good deal on a used car?
avatar
Eric Schad
Aug 23, 2021
What is the 1/10th rule of car buying?
I'm looking to buy a car, but I've heard I shouldn't spend too much. I've also read about the 1/10th rule. What is the 1/10th rule of car buying?
avatar
Eric Schad
Aug 23, 2021
Are there any outdated car buying tips?
I was going to buy a car and after talking with my father about it, I'm more confused than ever. Are there any outdated car buying tips I should avoid?
avatar
Eric Schad
Aug 23, 2021
How does someone buy a car?
I want to buy a car, but I don't really know where to begin. What do I need to do?
avatar
Emily Maracle
Aug 20, 2021
Does a dealer still need to run my credit if I got preapproval for a loan?
I got preapproval for a car loan from my credit union. When I went to the dealer, they insisted that I undergo a credit check before buying a car. Do I have to submit to this if I already have financing?
avatar
Eric Schad
Aug 12, 2021
Do I actually need to wait nine months to refinance a vehicle?
I got a rebate on my new Chevy Malibu for $1,500. The only stipulation was that I have to get financing and wait nine months for refinancing. Does this sound right? Do I actually have to wait to refinance?
avatar
Eric Schad
Aug 12, 2021
Can you negotiate the APR on a new car?
I have to finance my new car, but I want to get the lowest rate possible. Can you negotiate the APR on a new car?
avatar
Eric Schad
Aug 12, 2021
Do I have more negotiating power if I get my own financing?
I have a great relationship with my credit union and I want to use them for financing a car. However, I also want to get the best deal. Is it true that I'll get more negotiating power if I bring my own financing preapproval?
avatar
Eric Schad
Aug 12, 2021
Should I go for low financing or a discounted price on a Honda Accord?
I'm buying a Honda Accord from a dealership. I can choose either 0.9% financing for 60 months or a discounted price by $2,500. If I choose the discount, my interest rate from my credit union will be 3.25%. The normal price of the Accord is $26,970. Should I choose low financing rates or a discounted price?
avatar
Eric Schad
Aug 10, 2021
Where's the best place to secure financing for a used car?
I want to buy a used car for about $20,000. Where's the best place to find financing for the vehicle?
avatar
Eric Schad
Aug 10, 2021
What should I do if my financing was denied at the dealership?
I took possession of a new car after signing the paperwork for the loan. A few days later, the dealer said the lender denied my financing. What do I do now?
avatar
Eric Schad
Aug 10, 2021
What is the 0% APR monthly financing charge?
I've read over the paperwork of my 0% APR monthly loan with Nissan. On it, I see a financing charge of $30 for every $1,000 borrowed. What is this monthly financing charge?
avatar
Eric Schad
Aug 10, 2021
Is 15% APR on a car loan high after you're discharged from Chapter 7 bankruptcy?
I just got discharged from Chapter 7 bankruptcy due to my disabled daughter's medical bills. However, I still need a car to get to work after my previous one died. I did the paperwork and the dealer offered me 15% APR on a 60-month car loan. Is this rate too high?
avatar
Eric Schad
Aug 10, 2021
What's the best way to purchase a car?
I have money saved up for a car, but I'm also intrigued about financing options. What's the best way to purchase a car?
avatar
Eric Schad
Aug 10, 2021
Can you finance a car if you don't have a driver's license?
I'm a late bloomer when it comes to getting my driver's license. I'm finally getting it in a few months at the ripe old age of 27. I want to buy a car, or at least start shopping before I get my license. Can you finance a car if you don't have a driver's license?
avatar
Eric Schad
Aug 10, 2021
What are the main differences between bank financing and dealer financing for a car loan?
I keep hearing conflicting stories about whether bank financing or dealership financing is better for the car loan. In actuality, I don't even know the difference. What are the differences between dealership and bank financing?
avatar
Eric Schad
Aug 10, 2021
Will a car dealer always verify your employment?
I've been unemployed for about a year due to COVID, but I should be starting a new job making $95,000 per year soon. I need a car to get to my job. I'm worried that the dealer will want to verify my employment because I haven't started yet and I lied on my loan application that I had started. Will a car dealer verify my employment?
avatar
Eric Schad
Aug 20, 2021
Can car dealers force loan insurance on a car loan?
I went to a dealer to shop for a car and planned on financing through them. When I looked through the paperwork, I noticed a $900 charge for loan insurance. The salesman told me that this was a requirement to get the promo APR. Can car dealers force this loan insurance on you?
avatar
Eric Schad
Aug 10, 2021
What happens if the amount owed on a car loan is worth more than the value of the car when you want to sell?
I have a car that I want to sell. Unfortunately, the balance of the loan is more than the value of the car. What happens when I go to sell the vehicle?
avatar
Eric Schad
Aug 10, 2021
Should I opt for car incentives and rebates or a lower interest rate?
"I'm shopping for a car and in quite a conundrum. My credit union has offered me a rate of 1.7% for 48 months. On the other hand, the dealer has offered $3,500 off the price of the car if I accept a 5.7% loan for 48 months. The amount I need to finance without the $3,500 off is $31,500. Should I go for the incentives or the lower interest rate?"
avatar
Eric Schad
Aug 10, 2021
Can a car dealership refuse outside financing?
I went to a car dealership and found a car I liked. The salesman told me that they don't accept outside financing. Can a car dealership do this?
avatar
Eric Schad
Aug 10, 2021
Should I get a line of credit or a car loan?
I currently have a line of credit that allows me to withdraw money at 3.99%. This is lower than the car loan rate that I can find online of 5%. Should I get a line of credit to purchase a new car or a traditional car loan?
avatar
Eric Schad
Aug 10, 2021
Is Carvana a reputable company to finance with?
I was shopping for a car and found that Carvana gave the best price. However, I need a car loan to purchase the vehicle. Carvana offers financing, but are they a reputable company for car financing?
avatar
Eric Schad
Aug 10, 2021
How do I know if a car dealer is giving me the best loan rate possible?
I was buying a car for the first time. The dealer reassured me that financing through them was the best way to go. I signed a deal for the loan at 9% APR, not knowing if that was a good rate or not. For future knowledge, how do I know if the car dealer is giving me the best car loan rate?
avatar
Eric Schad
Aug 10, 2021
Who is affected if I pay my car loan off early?
I financed with a dealership to get incentives on a new car, but I have the money to pay off the loan. Because they've been awesome to work with, I don't want to negatively impact them by paying the car off early. Who is affected if I pay my car loan off early?
avatar
Eric Schad
Aug 10, 2021
Is there a disadvantage to paying off a car loan on the first month to get promotional incentives?
I noticed that if I finance a new car through the dealer, I stand to earn about $2,000 in incentives and rebates. I have the cash to pay for the car. Are there any downsides to getting this financing for the incentives and then paying off the balance after a month?
avatar
Eric Schad
Aug 10, 2021
Is financing a car through a bank always cheaper than through a dealer?
My father told me that I should never finance through the dealer, as they add fees and charges that banks don't. However, I've heard conflicting stories. Is financing through a bank always cheaper than the dealer?
avatar
Eric Schad
Aug 10, 2021
What are the pros and cons of getting financing from a dealership?
I'm a first-time car buyer. I've been told that getting a loan at the dealership is easy, but dealers only offer loans where they make the most money. I'm not sure what to do. What are the pros and cons of dealer financing?
avatar
Eric Schad
Aug 10, 2021
Do you get a better car loan rate from the bank or the dealer?
I've never purchased a car before, but I need to secure financing to buy the vehicle I want. Do you get a better car loan rate from the bank or the dealer?
avatar
Eric Schad
Aug 10, 2021
Do car dealers get kickbacks from lenders on car loans?
Every time I've purchased a car, the salesperson is always pushy about financing. Do car dealers get kickbacks from lenders?
avatar
Eric Schad
Aug 10, 2021

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free