Having more than one car per household is no longer a luxury. With limitations on public transport in many parts of the US and the sheer independence a car offers, it is very common that each family has more than one car. Despite the availability of used cars, most individuals prefer to buy brand-new cars, more so with the availability of many attractive loans and lease options. An advantage of availing a new car loan is access to affordable lending rates and reasonable payment options. Before opting for one, there are certain points to be considered and evaluated.

The key tips to note when you are contemplating a car loan are:

• Bargain: It is ideal to bargain and get a good offer price as the value of the car could possibly drop significantly within months of purchase. Negotiations with the dealer for a discounted price will help in losing less after the purchase.
• Good credit: It is important to have good credit. Usually, lenders prefer to give loans for new cars than for a used car as they are less expensive. It is best to check your credit score before applying for a car loan to ensure that you get a good deal on new car loans and financing solutions.
• Research: To get the best deals for your money it is advisable to apply with different lenders before you go to a dealership. This would ensure that you have an upper hand in financing and also that you get the best offer.
• Budget: It is important to make sure that you can afford both, the down payment and the monthly repayment beforehand. Budgeting can be the most crucial part of the deal.

To apply and receive approval for a car loan, it is necessary to furnish the following details:

• Requested loan amount
• Social Security number
• Employer’s name and address
• Annual gross income (before deductions)
• Lienholder name and pay off amount (for refinancing or for private party purchase with the lien)

You can start the process of applying for car loans either by applying online or by having a conversation with a particular bank or lender or visiting them in person. The banks will normally process the application as quickly as possible and most applicants get a credit decision in about two hours or less (during normal business hours). If the car loan is approved, a representative will call you to verify your identity and make an appointment. It is necessary to provide automobile insurance and proof of income in most cases.

For people who need a used car loan, some banks and lenders help by offering the same competitive rates on both new cars and used cars for models up to six years old. To qualify for the best rate, the loan tenure of the car loan should be for a term of 36 months or lesser and of a value greater than $10,000. Payments will be automatically deducted from your personal checking account.

In the case of refinancing your car loan, there are flexible terms and competitive rates available with various banks and lenders. This type of car loan can be availed to lower payments or repay an existing car loan, helping you to save some money.