If you need car financing badly, there’s good news: You have a lot of sources to shop in. But not all of them are the same. Allow us to equip you with information about some auto loan providers and how they are different from each other.
For some car buyers, banks are the primary source of auto loans and other financial products. But not all banks offer car financing. And for those who do, not all of them offer the same rates and perks. However, their offers are almost always more competitive than other auto loan providers.
If you have an existing relationship with a bank, check their offers first. Banks can give low interest rates or other incentives to their existing customers especially if the relationship has been good ever since.
Some banks here in OKC that may offer competitive auto loans are Bank of Oklahoma, Chase Bank and First Fidelity Bank.
Credit unions are another source of competitive auto loans. Credit unions are not-for-profit organizations formed by and for their members. The interest rates they offer for their auto loans can be lower than what banks offer because the goal of their financial services is to help their members. If you are part of a credit union, you can check out their auto loan program first before shopping in other sources.
If you are not yet a member of any credit union, here are some you can join in Oklahoma City: Weokie, Oklahoma Employees Credit Union and Allegiance Credit Union.
Dealerships can arrange financing for you. They act like a middleman between you and their network of lenders. However, they may charge a fee for this service which includes handling paperwork. This is one reason why getting an auto loan through a dealership can be more expensive.
But you can still find competitive rates in dealerships, especially in reputable ones. They are also more willing than banks to take bad credit borrowers into their loan programs. Try checking out the offers in these lots: Hudiburg Auto Group, Fowler Dodge and Smicklas Chevrolet.
Buy Here Pay Here
Buy here pay here car lots are also car dealerships. But what they do uniquely is they themselves provide financing to their customers. That means they don’t need the approval of other lenders to grant people with auto loans, and buyers pay the amortization directly to them.
Some buy here pay here car lots you can find here in OKC are Ital Auto, Integrity Auto Finance and The Car Store.
Home Equity Line of Credit
If you have built enough equity in your home, using it can also be a way to finance your vehicle. A home loan can be cheaper, but unlike car loans you place your house as your collateral—not your vehicle. So, we suggest keeping the term short if you don’t want to put your shelter at risk for too long.
An advantage of taking out a home loan for a car has something to do with your tax returns. Interest payments in home loans are tax deductible, but interest payments in car loans are not.