Auto Loan Basics: Buying, Refinancing and Lease Buyouts

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Financing is often the most expensive part of a vehicle purchase, and the dealership is not the only place to get it. Here is how the main options work and what to compare.

Common loan types

• New or used car loans for purchases from franchised dealers.
• Private-party loans when you buy from an individual.
• Refinancing to replace an existing loan with one that has a different rate or term.
• Lease buyouts to buy a car you currently lease.

What to compare

• The APR and the loan term, not just the monthly payment.
• The total interest you will pay over the life of the loan.
• Fees, prepayment terms and any required add-ons.
• Your credit profile. Lenders weigh credit scores heavily, and a higher score generally means better offers.

One application, multiple offers

myAutoloan.com is an online auto finance marketplace. You complete one application and can receive up to four loan offers from lenders. It serves consumers with fair, good and great credit, and applicants with a score of 600 or higher have a better chance of qualifying. You can read its financing basics or start an application.

This article is general information, not financial advice. Rates and approval depend on your credit and the lender. Review all terms before you accept an offer.