Know the Options for Car Loans Altoona PA
Buying a new or used vehicle is an exciting experience. The thrill of shopping, taking test drives and ultimately choosing the car that is the right fit can be a very enjoyable and rewarding experience. For the vast majority of car buyers, the financing of the purchase is going to take place with some type of loan. Banks or credit unions are the logical choice to get a loan, and each financial institution is going to offer a variety of products for making the vehicle purchase.
When shopping for Car Loans Altoona PA, it is important to understand the terms of the various loans, and the advantages or disadvantages to each one. Short term loans are often used for people that want to pay the balance of the loan off quickly. These loans usually have terms of twelve to thirty six months. The interest rates on short term car loans is going to be a bit lower in most cases when compared to a long term loan. There are a few advantages to getting a short term loan. The first is that the car will be worth more once it is paid in full. The second is that the customer will not be paying as much money toward interest, so the overall cost of ownership for the car is lowered. The disadvantages to this type of loan are that the monthly payments are going to be high and that might be too much of a burden to carry each month.
If a short term loan doesn’t seem like a good fit, then there are long term options as well. These loans typically carry a term of thirty six to eighty four months. The interest rates on these loans might be a bit higher when compared to the short term loans, but that is not necessarily a bad thing. The most common Car Loans Altoona PA carry a term of sixty months (five years). Right now it is possible for people with good credit to get rates as lows as 1.99 percent. That is a great deal and it allows the monthly payment on the loan to be very manageable.
No matter what Car Loans In Altoona customers are looking at, there is something to meet the needs of most buyers. Excellent credit will equate to low interest rates, but there are loans for less than perfect credit as well.