Delaware Car Loans

Finding a car loan in The First State is easy! We're here to help with your Delaware car loans.

Where Can I Get a Car Loan?

Times are tight and it is true that credit has become less available, but car companies and private sellers still want to sell cars - and you obviously want to buy one! So, while the economy and the banking industry is struggling, there are still the same three ways to acquire a loan to buy that car, truck, SUV, or motorhome you've got your eye on.

1. Dealership Car Financing - In some respects this is the easiest on everyone, but it isn't necessarily the best deal for a car buyer. This may be the best way for those with medium or poor credit to come by a loan, however. And with manufacturer incentives, this is often a zero-interest way for those with excellent credit to buy a new vehicle.
2. Bank Auto Financing - If you have a relationship with your local bank, this may be a good way to get terms and an interest rate that is in your favor. Additionally, with a relationship with the personnel at a bank, should you come on hard financial times, they are more likely to work with you before repossessing the vehicle.
3. Online Car Financing - Often very simple to apply for and fast to respond with an answer - with no runaround like you might face at a dealership - online auto loans usually give you the best rates available to someone with your credit history. Often comparing dozens of available rates and giving you the best out there from among them, this is often a very smart - and easy - way to get a car loan.

What about the Terms?

The "term of a loan" means the length of time that the note has been financed. So, if your loan is for 60 months, or five years, the term of your loan is 60 months. Having said that, the question that is always raised is, "How long should I take to pay for my car?" Lenders often leave that option up to the car buyer who has applied for the loan.

In the case of used cars, lenders do not typically offer terms beyond 48 months, sometimes no more than 36. The reasons are multifold and beyond the scope of this article. But in the case of a new car, depending on the make and model, some terms are as long as 72 months - that's six years to pay on a new vehicle!

The long and the short of it is that a longer term equals a lower monthly payment, for the most part, but a more expensive loan in the long run. For example, let's say you're financing $30,000 on a new SUV at 5%. If you choose a 36 month term, you'll be writing what seems like a whopping check: $899 each month. At that same sticker price, same interest rate, for a 60 month term, your payment would fall to $566 – a difference of $333 per month. That could make a huge difference to a family on a budget. However, if you have the wiggle room in your budget, over the term of the loan, you would actually save almost $20,000 in interest on the shorter term 36 month loan. Check out five tips to lower car loan payments on the following page.