Bellevue Auto Loans

Finding Bellevue auto loans can be a tricky process. Learn how to avoid some common auto financing pitfalls here.

Every Deal Does Not Apply to You

You may be tempted to snatch up Bellevue auto loans advertising incredibly low interest rates. Usually, though, these Nebraska auto loans are little more than a bait-and-switch tactic on behalf of the car dealership. What they don’t tell you is that you probably don’t qualify for the rates advertised with these loans. In fact, 40% of car buyers who inquire about zero-percent financing don’t qualify and have to pay a higher rate. Keep in mind as you shop for your Nebraska auto financing that not every deal will apply to your situation.

Dealer Rate Inflation

The majority of new cars are financed through the dealership. This is probably the most convenient way to obtain Bellevue auto loans, but it is also usually the costliest. One thing many carbuyers don’t understand is that dealerships simply arrange financing for you; they do not actually offer the money themselves. This means that they obtain a loan from an auto manufacturer or other lending institution and then inflate the interest rate of the loan by two or three percent. For example, you might qualify for a Nebraska auto loan with a 6% interest rate. The dealer may tell you that you actually qualify for a loan with a 9% interest rate and then take the 3% difference as profit/commission. Not only is this behavior legal, but it is also basically standard practice among dealerships. This is why you are better off getting an auto loan from a third-party source.

Don’t Combine Loans

If you are buying a new car but you still haven’t paid off your old one, then the dealer will probably offer to roll your old loan into your new Bellevue auto loan. In other words, the old loan will be paid off, but the remaining balance will be tacked onto the new Nebraska auto loan. This applies when your car’s trade-in value isn’t enough to pay the remaining balance on the loan. Try to avoid this practice, called loan stacking, if at all possible. The second you drive off the lot, you will owe more on your car than it’s worth, which puts you in a precarious financial situation. If you have an accident or need to trade in or sell the car in the future, you will end up losing money on the car.

Alternative Auto Financing Options

If you know the dealership is not giving you the best interest rate possible on Bellevue auto loans, don’t hesitate to take your financing business elsewhere. You can get Nebraska auto loans from banks, credit unions, and a multitude of independent online lenders. You might also consider a home equity loan to get an even lower interest rate. Still have questions that are unanswered? check out our frequently asked questions for more answers