Many people fall in love with a car from a dealership. That’s it. Where can I sign? We often end up getting burned when it comes to financing, even if we do a good job at lowering the sticker price. People with poor credit ratings are especially vulnerable to this. These people often find themselves so shocked to learn that their auto loan application has been approved that they sign the contract before the dealer can change his mind. They realize how poor they will become in the next five years due to the auto loan’s interest rate only later.

What are my financing options

Now you know what you are thinking. You will be disappointed in the auto loan process if you are not patient. There are many options for auto loan sources: A traditional bank, a credit union and financing through the dealer.

Okay, now what’s the best option?

This all depends on you. What is your credit score? A traditional bank will likely offer you a great rate for your auto loan if you have a mortgage and a checking account. Dealers will often offer auto loans to people with poor credit histories. However, the costs of driving the car off the lot could lead to worse credit. Online shopping is the best way to compare auto loan rates.

Ugh! It’s so stupid! It takes me forever just to find what I’m looking for!

It’s now! How long does it take to search for “auto loan” on Google? If you don’t mind paying thousands more interest to have the dealership finance you, then go for it. The Internet is the best place to begin your search for the best auto loan rate.

How can I be sure that those Internet people are trustworthy with my financial information?

This is a great point. Many banks offer online applications for auto loans as a service to customers. This saves them processing costs. Online applications for Chase Manhattan auto loans are possible or you can go to one of their branches. You will often find that online loans are offered at lower APRs than those you would get if you went to a branch. Chase Manhattan auto loans are one example, but many financial institutions offer better rates to their online customers.

Why would they do this?

Are you not too trusting? This is a great skill to have when looking for auto loans. The catch is what you’re looking for. In most cases, your online auto loan will have a lower interest rate because you will need to sign up for electronic payments. A loan officer in a branch can take up time and use resources that aren’t necessary when you submit an online application. However, not all institutions offer auto loans at lower rates than Chase Manhattan. Chase also requires that you sign up for automatic payments to receive a discount on the rate.