What to know about Car Loans

When you’re ready to buy a car, you probably think about the model, options, and colors you prefer. But when it’s time to sign on the dotted line, have you given thought to your car financing? Is your rate as low as it could be? How long will it take to pay off? It’s important to weigh your options and make the move that will best support your financial health.

Buying a car is easy with a Traditions Bank Auto Loan. We offer a variety of terms designed to help meet your budget. Have your payment automatically deducted from a Traditions Bank checking account and save even more!

How does my credit score affect my Car Loan options?

You have several options when shopping for a car loan, so take time to compare the different ways you can finance. Car buyers with better credit scores typically qualify for the lowest interest rates. If your credit isn’t perfect, you can help improve it by establishing a record of on-time payments. Once your credit improves, you may qualify for a better interest rate — and a lower monthly payment — by refinancing your auto loan.

How Auto Loans work

When you borrow money to buy a car, you have a few options. Some people prefer to finance the entire cost of the car without making a down payment. Others want to make a substantial down payment so they can reduce the amount they need to finance or are able to purchase a more expensive make or model. The right choice for you depends on many factors, but one of the biggest is how much you can afford to pay every month.

Auto loans typically last between three years and eight years. In general, longer loan terms have lower monthly payments but higher interest rates. You also want to consider car maintenance costs. Some makes and models cost significantly more to maintain than others.

It’s best to pay your auto loan off as quickly as possible. That’s because the value of most cars depreciates quickly. If you have a long loan term, you may owe more on the car than it’s worth for a certain period of time.

Tips to get the Car Loan you want

If you want to buy the best possible car with the most competitive financing, start by:

• Checking your credit score. Excellent credit wins the best interest rates and the most affordable payment terms. The best way to improve your credit is to always pay your bills and credit card statement balances on time and in full.
• Evaluating your budget. Look closely at your budget to avoid problems with too-expensive payments. Don’t forget to educate yourself on the cost of ownership, since expenses for new tires, brakes, and repairs can add up quickly.

Contact Traditions Bank Today

Whether you’re in the market for a new car loan or you need auto financing for a car that’s new to you, Traditions Bank can help. Our Associates devote every day to providing local residents like you with the trustworthy, relationship-minded service you deserve.

For more information about our auto loan products, get in touch with one of our Personal Banking Relationship Managers today!