The average car buyer is well aware of how important an auto loan is to being able to afford a newer vehicle. In fact, a person with poor credit may not be able to buy a car without assistance from a loan company for bad credit car financing to approve them. But qualifying for financing is not the only concern, what about getting the best rates?
Top Car Finance Companies
Every credit situation is different, but the goal to locate the best possible car loan is something that everyone shares. The only problem is that it is rather difficult to pinpoint one specific lender without quality statistics as proof.
That is why we looked into Experian's "State of the Automotive Finance Market" report from the fourth quarter of 2012. This showed that a large percentage of borrowers preferred banks and credit unions. To get an idea how the market shares for the best auto loan companies differed check the list below.
- Banks: 41.2%
- Buy Here Pay Here: 9.2%
- Captive (financing from manufacturer): 17.7%
- Credit Union: 18%
- Finance Companies: 13.9%
Now the only problem with these percentages is that they only highlight market shares, which does not mean they provide the top rates. Each these five lending sources cater to certain customers and offer special financing benefits. For example, banks and credit unions are known for their competitive rates, while BHPH dealers specialize in bad credit loans.
Choosing the Right Lender
So if market shares don't point to a clear favorite and each car loan company has their own benefits how do you choose which to use? The answer is to collect loan estimates from each lender and compare them to one another. You never want to take the first deal you're offered without first knowing if there is something better.
With that said it's a good idea to always visit the bank or credit union you currently have an account with to see if they finance cars and what their rates are. Afterwards, take what you know to several auto finance companies in your area and see if they will counter your other offers with a better one.
How AutoNet Financial Can Help
After reading this you maybe thinking that the loan process is too time consuming or overly complicated. That is why we suggest that you apply for a car loan online with AutoNet Financial and allow us to locate the best auto financing company for you. We will use your credit information to find a lender in your area with the best rates for your credit situation in no time at all.
