Find the Best Car Loans in Buffalo, NY

How to get an auto loan in Buffalo

While many Buffalo residents will start their search by looking at available cars, it’s often better to secure a car loan before shopping. You can be pre-approved for a loan from banks, credit unions and online lenders. Getting a pre-approved loan has many benefits, including:

• Sets a budget: Having your loan in place lets you know how much you can afford and helps you refine your search for a car. Setting a budget is also useful when negotiating the price of a vehicle and prevents you from being pressured into adding features that increase the cost.
• Saves time at the dealership: Buying a car can be a long, complicated process. Having to negotiate financing at the same time extends the process.
• Lets you shop at multiple dealers: Unlike a loan arranged through a dealership, pre-approved financing lets you search for cars at multiple dealers in Buffalo and gives you additional options to find the best price.

Comparing car loans in Buffalo

The easiest way to compare loans is to look at the overall cost over the life of the loan. This is determined by several factors, including:

Interest rate: Lenders generally use credit scores as the primary factor in deciding the interest of your car loan. People with excellent credit score usually receive an annual percentage rate between 3 to 5 percent, while a person with a bad credit history will likely receive loan offers with interest rates between 12 and 18 percent.

Term length: Most car loans are paid off over 36 to 72 months. While a term paid off over a longer period will result in lower monthly payments, it will cost more over the life of the loan. Longer-term loans may also come with higher interest rates.

Down payment: Those with poor credit may have to make a more substantial down payment. Paying more money upfront will lower the total amount you owe, resulting in lower monthly payments and letting you pay off your loan faster.

When looking at used cars in Buffalo, take a look at the price of similar vehicles. Googling the car’s year, make and model will reveal sources for comparison with dealerships. Once you’ve determined the price range of the desired vehicle, you’ll have a realistic picture of the loan amount you will need.

If you are happy with your car but stuck in a loan with unsatisfying terms, many lenders will refinance your loan. Refinancing can reduce your interest rates, lower your monthly payments or change the length of time left on your loan.

Getting a car loan with poor credit in Buffalo

Having poor credit makes getting a car loan in Buffalo more difficult, and you’ll receive less than favorable loan conditions. One way to get a better loan with bad credit is to have a family member or friend co-sign the loan, which means they take responsibility if you default on your loan payments.

It can be also be challenging to get a car loan if you are going through an active bankruptcy. Talk to your attorney and the judge presiding over your bankruptcy case before applying for any car loans.