QandAs: Loans

What are the Top Car Loan Companies?

Answer:
There are hundreds of car loan companies, but the top car

loan company for you is the company that provides you with the best rates and terms for your unique situation. Consider the following when you’re ready to make your next car purchase:

1. Credit unions are not really considered to be a car loan company; however, your local credit union can usually provide you with a low cost loan for a new or used vehicle.

2. Bank loans can often be obtained with lower interest rate than what an auto financing company may charge.

3. Car dealerships have their own lending affiliates like GMAC (General Motors Acceptance Corporation) which allows you “one stop shopping” for purchasing both your car and your car financing.

4. Independent finance companies lend to borrowers who may be higher credit risks. Dealers benefit monetarily when they refer you to an independent finance company.

5. Online financing is another alternative to consider when purchasing your new or used vehicle. There are hundreds of online financing companies.