Best Auto Loans
Looking for an auto loan? You’ve come to the right place. But what should you look for in an auto loan? And how should you go about finding the right lender for you?
Read on to discover the smart way to compare auto loans.
This method does require doing some research. But don’t worry we’ll teach you how to cut out hours of research and get your lowest rate in minutes. Spoiler alert. It involves letting our free AI loan offer engine do the heavy lifting and leveraging the wisdom of the crowd courtesy of Slate Financial’s community auto loan reviews.
Common Questions
How do you compare auto loans?
Want to find the best deal? These are four features you need to consider:
- Competitive APRs
- Low fees
- Loan amount ranges
- Positive consumer reviews
Where can you get an auto loan?
Dealers and car manufacturers
Dealers and car manufacturers often work with a network of financing companies to offer buyers a one-stop shop. Once you find the car you want, you can apply and the dealer will come back with a financing solution for you.
While this can be convenient, it’s not always the best option. Dealers can be biased and may work your financing in their best interest rather than yours. Further, they may not have the best deal, so it’s always good to shop around.
Banks
Most banks, from large to small, offer auto loans as well. You can often apply online or by visiting a branch.
Credit unions
Credit unions also offer auto loans and are known for their competitive interest rates. However, you will have to be a member to apply for their loans.
Online non-bank lenders
Lastly, a large number of non-bank financial companies that offer auto loans have cropped up. You can easily apply with many of them in just a few minutes and can get funding directly deposited into your account within days.
How to negotiate an auto loan
The process of buying a car notoriously involves haggling. The thought of negotiating is enough to make some people put off buying a car until the absolute last minute. Only 31.6% of car buyers negotiate the interest rate on their loan
A survey by the Federal Reserve reported that 76.1% of car buyers negotiated the purchase price with the seller, but only 31.6% negotiated the interest rate on their loan. It gets worse. 27.1% of car buyers considered the monthly payment on their auto loan as the most important factor, but only 6.1% considered the interest rate on the loan as the most important factor (source).
There are good reasons why car buyers are so bad at negotiating loan rates and terms.
First, comparing financing costs is complicated. Many lenders are not transparent about the total cost of a loan or you have to complete extensive application forms before you get a rate. Second, many car buyers don’t understand how to calculate to total cost of auto financing.