Compare Auto Loans Easily
When you get quotes on quick online auto loans, you will have to know how to compare the loans to decide which is best for you. Here are the criteria you should examine.
Anytime you take out loans, whether they are quick online auto loans or anything else, you will have to pay certain fees and charges up front. Your lender may refer to these expenses as processing fees or loan origination fees. The important thing is to know the total cost of these up-front expenses. This is easy to compare with quick online auto loans. You simply need to add up all the fees and charges for each loan to see which one has the lowest up-front costs.
APR (Annual Percentage Rate)
The APR of quick online auto loans is the best indication of the total cost of borrowing. The APR will include the interest rate of the loan in addition to all fees and charges. The APR of quick online auto loans will be expressed as a percentage of the loan's principal. In general, the lower the APR, the better. According to the federal Truth in Lending Act, your lender must display your APR in bold on your consumer loan agreement. When you compare quick online auto loans, rely on the APR rather than the interest rate, as the APR is a much more accurate depiction of the total cost to you, the borrower.
The total cost of quick online auto loans is also important. The total cost refers to all of the monthly payments you will make plus any fees and charges. Total cost is a better way to compare quick online auto loans than monthly payments because it takes into account charges and fees as well as interest expense over time. For example, comparing total cost will reveal that a 60-month loan with a lower monthly payment is actually more expensive than a 36-month loan with a higher monthly payment, provided the two loans have the same interest rate.
The final criterion you will want to evaluate when shopping for quick online auto loans is prepayment information. Find out if you can pay the loan off early, and, if so, how much it will cost you to do so. This information will come in handy if you decide to sell the car or refinance your loan.