How to choose the best car loan for you
When looking for a car loan, shop around and select the terms that make the most sense for you.
Believe it or not, deciding how you will finance your car is more important than choosing a color. Doing some homework before going to the dealership could help you score better terms on a loan than what the dealership might offer.
Where to get the loan
Car dealerships are often eager to provide in-house financing for your vehicle purchase, but it might be wise to speak with additional lenders before making your decision. Shop around. Prepare a list of questions and asking potential lenders for details on total price, length of loan, interest rates and potential penalties.
What you’ll need to qualify
You will need the following information to apply for a car loan:
- Full name and proof of identification
- Address and a recent utility bill
- Employment history and monthly gross income
- A list of assets and expenses
- Signed authorization for the lender to obtain your credit report
- Car details, if you have them (year, make, model, etc.)
Figure out how much you want to spend each month on your total car payment. Then review of the best available auto loans for you. When you do some research before visiting dealerships, and understand what options you have available, it puts you in a better position to negotiate the terms of your deal. Remember, many car dealerships are likely to make offers that are most beneficial to them, not the customer.
How to finalize your selection with a car loan calculator
Once you have a vehicle in mind, hone in on the total cost of the vehicle (remember things like tax, title and liscense on top of the base price) and your options. Use a car loan calculator to determine exactly how much you’ll spend depending on the length of loan and financing options you choose.
The auto loan calculator will factor in:
- Total cost of the vehicle
- Value of any trade-in vehicle
- Required down payment
- Approximate interest rate
- Sales tax in your state
- Length of the loan
Determine if the car you want is something that makes sense for you financially based on your loan options.
Applying for the loan
Once you know which car and loan you want, it’s time to officially apply. If you have a great credit history and secure, long-term employment, approval could be instant. In some situations it might take a day or two for approval.
If you're ready for a new or new-to-you car, learn more about your financing options.
Mortgage and Home Equity products are offered by U.S. Bank National Association. Loan products are offered by U.S. Bank National Association and subject to normal credit approval.
Investment and Insurance products and services including annuities are:
Not a Deposit ● Not FDIC Insured ● May Lose Value ● Not Bank Guaranteed ● Not Insured by any Federal Government Agency
U.S. Wealth Management – U.S. Bank and U.S. Bancorp Investments is the marketing logo for U.S. Bank and its affiliate U.S. Bancorp Investments.
The information provided represents the opinion of U.S. Bank and U.S. Bancorp Investments and is not intended to be a forecast of future events or guarantee of future results. It is not intended to provide specific investment advice and should not be construed as an offering of securities or recommendation to invest. Not for use as a primary basis of investment decisions. Not to be construed to meet the needs of any particular investor. Not a representation or solicitation or an offer to sell/buy any security. Investors should consult with their investment professional for advice concerning their particular situation.
U.S. Bank, U.S. Bancorp Investments and their representatives do not provide tax or legal advice. Your tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation.
For U.S. Bank:
Equal Housing Lender.
Deposit products are offered by U.S. Bank National Association. Member FDIC. Mortgage, home equity and credit products offered by U.S. Bank National Association. Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice.
U.S. Bank is not responsible for and does not guarantee the products, services or performance of U.S. Bancorp Investments, Inc.
For U.S. Bancorp Investments:
Investment and insurance products and services including annuities are available through U.S. Bancorp Investments, the marketing name for U.S. Bancorp Investments, Inc., member FINRA and SIPC, an investment adviser and a brokerage subsidiary of U.S. Bancorp and affiliate of U.S. Bank.
U.S. Bancorp Investments is registered with the Securities and Exchange Commission as both a broker-dealer and an investment adviser. To understand how brokerage and investment advisory services and fees differ, the Client Relationship Summary and Regulation Best Interest Disclosure are available for you to review.
Insurance products are available through various affiliated non-bank insurance agencies, which are U.S. Bancorp subsidiaries. Products may not be available in all states. CA Insurance License #OE24641.
Pursuant to the Securities Exchange Act of 1934, U.S. Bancorp Investments must provide clients with certain financial information. The U.S. Bancorp Investments Statement of Financial Condition is available for you to review, print and download.
The Financial Industry Regulatory Authority (FINRA) Rule 2267 provides for BrokerCheck to allow investors to learn about the professional background, business practices, and conduct of FINRA member firms or their brokers. To request such information, contact FINRA toll-free at 1.800.289.9999 or via https://brokercheck.finra.org. An investor brochure describing BrokerCheck is also available through FINRA.
U.S. Bancorp Investments Order Processing Information.
© 2021 U.S. Bancorp
