There are at least 3 ways to pay for your next car. One is to buy it in cold cash. By doing so, you don’t have to pay any interest. Another way to finance your car is through leasing. In a car lease, you sign a lease contract that lasts for a short period. You pay only for the value of the car you used up during that period. When the contract expires, you either return the vehicle and walk away or buy it from the lessor.
But many car buyers today resort to taking out an auto loan to purchase a car. Auto loan terms are longer than lease terms. You also have to pay the monthly payments at an interest rate. For some car buyers, this is the best way for them to afford a car. So, the rest of this guide will talk about where you can get an auto loan in Portland.
Banks and Credit Unions
Generally, banks and credit unions carry the most competitive rates in the industry. Are you currently a client of Bank of America, Bank of the West, KeyBank or any bank in Portland? It’s a good idea to check out the auto loan rates in your current bank first as you shop for auto loans. Banks can give you a good rate if you have a good reputation to them as their client.
Meanwhile, credit unions can offer lower rates than banks. However, their auto loans are exclusive for their members. That means you cannot take out an auto loan from a credit union if you’re not a member. Some credit unions you can check out in Portland are Unitus Community Credit Union and Advantis Credit Union which are both located Downtown.
Competitive rates give banks and credit unions an advantage over other auto loan providers in the industry. But most of them can’t set up an auto loan quickly unlike many of their competitors. We’ll see who these quick auto loan providers are later on.
Dealerships don’t just sell cars. They can also arrange financing for you, acting like a middleman between lenders and car buyers. Some can even provide financing themselves. This is called in-house financing or buy here pay here.
What’s great about dealership financing is it’s often convenient and fast. Some dealers also offer competitive rates. However, you would most likely have to face sales pitches for add-ons and high pressure to take the deal right away.
How about bad credit? A lot of dealerships today are offering quite good auto loan rates for people with bad credit. If you’re considering financing your next car with a dealership, find one that’s near your residence. It’s going to be easier and more convenient that way.
You can also approach lending companies for auto financing. The competition in the auto lending sector of the industry continues to grow stronger. This is one reason why lenders, including banks and credit unions, push their rates down. So, the auto loan rates lending companies offer can also be competitive or more competitive than banks and credit unions.
Another advantage lending companies like us, Portland Auto Approval Center, have over other lenders is the service we offer for people with bad credit. Bad-credit borrowers may find it hard to be accepted by banks and other big lenders. But lending companies are more willing to take greater risk and finance cars for bad-credit borrowers. In addition, the auto approval process is often quick, especially with companies like us that facilitate the process online.
As a final note, be careful when negotiating with any lender. Regardless of whether it is a bank, credit union, dealership, or online lender, don’t let your guard down against rip-off artists. Also, always read the contract thoroughly before signing on the dotted line.