The prospect of owning a new car or truck is exciting. While there’s always dealer financing, is that really the way you want to go? It never hurts to see what deals are out there for auto loans in Elmhurst. As you look around, it pays to understand the merits associated with each possible lending arrangement. Here are three tips that will help you evaluate any offer that comes your way.
Make Sure You Know About All of the Fees and Charges
How much do you know about the fees and charges that come with each loan offer? You may be surprised at the types of charges some lenders will assess. Did you know that some impose a convenience fee if you remit your installment payments online? There are also sometimes provisions within a loan contract that allows the lender to collect processing fees no matter how you remit the payment. That doesn’t even begin to touch any fees that you have to pay on the front end.
Read the terms and conditions carefully. Project the amount you will pay in fees and charges over the life of the loan, even if you make every payment on time. That will tell you if the deal is really a good one.
Find Out How the APR Applies to the Balance
At first glance, the APR on the loan seems to be a good one. Step back for a moment and ask how the rate is applied to the balance. Depending on the total amount you need to finance, the duration of the financing, and how that rate is applied, you may find that auto loans in Elmhurst with a slightly higher rate will actually cost less money over the loan term.
Ensure That It’s Easy to Manage the Installment Payments
Always choose a loan arrangement that allows you to manage the installment payments without hardship. It never hurts to have one that allows you to make advance payments with no penalties. In the event you have some financial emergency one month, being ahead by payment or two will help. You’ll find that many lenders who offer auto loans in Elmhurst will help you determine what payment amount fits into the budget and see what they can do on your behalf.
Do you want competitive interest rates and other essentials as part of your auto financing? Contact the team at Leyden Credit Union today. With our help, you’ll have financing that fits into your budget and helps to take your credit score to the next level.