Finding Great Auto Loans

Buying a car on credit is an important decision for your credit score, since it is one of the ones that most affect you, for better or worse, for the amount you will request.

That is why in this article we will tell you how to identify that the product you will choose is good, which will also benefit your pocket.

1. No commission for opening

Many auto loans offer this benefit, which is very good, since this commission usually takes away the opportunity to give you a good down payment.

Always check that the lender offers you this or that this charge does not exceed 5 percent of the total value of the vehicle.

2. Free insurance

Having 12 months of free insurance will help you save for the next year, when you do have to pay for that expense. In addition, it will make you more liquid during that period.

Just keep in mind that, if your credit is for more than one year, the financial institution that granted it to you will charge you, in the remaining monthly installments, the auto insurance, which will be contracted with an insurer with which they have an agreement, so you will not be able to choose

3. Low rates

As in all loans, the automaker has an annual interest rate that you must pay, so, when comparing, this item is very important.

The rates for these types of credits average 15 percent just like car registration loans so look for one below or equal to that percentage.

4. No penalties

Do not forget to make sure that the institution that offers you the credit does not charge penalties for payments or early settlement on the vehicle registration loans, as this can reduce the interest you would pay.

A credit that penalizes you for this type of action, regardless of the period you should wait to perform them, should be immediately discarded.

5. Research and read the contract

Automotive credit can be granted by banks, self-financing, among many other lenders, so you must investigate who will grant it and if it is reliable.

In addition, reviewing your contract in detail will prevent you from taking surprises with commissions that were not mentioned in the beginning, but that do appear in it.

These two things will help you protect yourself from any fraud and acquire a credit that affects your long-term finances.

Did you like the article? Is there anything else that indicates that a car loan is good and that we have not mentioned? Share your comments!

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