Common Terms
- Co-Signer: Also known as a “Guarantor,” this is someone who guarantees the payment of the loan.
- Downpayment: Deposit paid at the start of the payment agreement. Recommended to be 10% to 20% of the purchase price.
- Monthly Payment: Payment owed by the borrower on a monthly basis.
- Term: Length of the payment period. The average is 36 to 60 Months.
- Interest Rate: The cost of borrowing money. Variable rate that is dependent on the credit score of the borrower. (View Current Rates)
Vehicle Payment Calculators
Where to Apply for an Auto Loan
The best place to apply is with a lender willing to offer the best rate. This is often online where your profile and terms will be shown to banks nationwide. The rate will be determined by two factors: the borrower’s credit score and the down payment. The higher both numbers are, the better the chance of a lower interest rate.
Best Auto Loan Websites
- NerdWallet – Get a preview of up to 10 other financial institutions and what they offer.
- Lendingtree.com – Breaks down the most popular auto loan offers.
- Interest.com – Compares the top six auto loan offers.