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How can I take out a loan for a car?
I really want to get a 2022 Toyota Prius as my first new car. I love hybrid and electric cars, but they seem to be a little expensive. What’s the best way to get a loan to buy a new car?
Chloe Jenkins · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Hybrid and electric cars are great environmentally conscious car choices. But yes, they can be on the pricey side.
To take out a loan for a car, start by checking your credit history. The interest rate and terms of the loans for which you qualify will be heavily dependent on your credit score. The higher your score, the better your loan will be.
Once you’re familiar with your credit score, start looking for lenders and applying for
loans
. You will likely find some of the best rates at banks and credit unions, dealerships, and even online.After getting quotes from prospective lenders, you should be more familiar with your budget and can go ahead and pick your car. In your case, you’re set on the new Toyota Prius, so this step shouldn’t take very long—so long as you qualify for an appropriate loan amount to cover the cost.
Once you’ve selected a dealership and chosen your car, go through your loan agreement carefully prior to signing to be sure that you’re comfortable with the terms and conditions. If you need help understanding your
APR
or monthly payments, your lender or the dealership’s finance department should be able to answer your questions.When you’re ready, sign on the dotted line and enjoy your new ride!
If your credit score improves over the life of your loan, you may qualify for better rates that can save you hundreds of dollars on your car loan. The
Jerry
app is the quickest and easiest way to access competitive refinancing options. On average, car owners pay $85 less every month by refinancing.View full answer
- Gregory R.
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