Hey! If you're looking at buying a new car, here are some things to know about auto loans.
Auto loans are financed through banks, credit unions, and non-bank automobile manufacturer financing units. Often, you're offered installment loans that last between two and eight years. Usually, you're asked to make a down payment, which will help reduce your monthly payments.
Auto loans can have different interest rates. Fixed-rate loans can mean that the rate will stay the same for the entire life of the loan, while variable-rate loans can mean the interest rate will fluctuate with overall interest rates. Your interest rate and the length of your loan impact the affordability of your monthly payments.
While auto loans can make buying your new car a reality, be sure to look at all of the fine print, especially regarding the type and the amount of interest you'll be paying. For more information about auto loans, visit southernbank.com/getwell. See you next time on Money Matters.
