Lincoln Auto Loans

Lincoln auto loans don’t have to be expensive, especially on our site. Here are some ways you can save money on your auto loan.

Consider Tapping into Your Home Equity

If you own a home, you might have more options when it comes to Lincoln auto loans. To make use of your home equity to buy a new car, your home must be worth more than the outstanding balance on your mortgage. For instance, if your home is worth $150,000 and you owe $120,000 on your mortgage, then your home equity is $30,000. You can apply this money toward the purchase of a new vehicle. Usually, home equity loans have lower interest rates than conventional Nebraska auto loans. In most cases, you can also deduct the interest on the loan from your income taxes. With home equity loans, you have two basic choices. You can either get a standard home equity loan with a fixed rate or a home equity line of credit (HELOC) that works much like a credit card and has a variable rate. The initial rate is lowest with a HELOC, but later fluctuations in rates could mean that your overall interest expense will be higher.

Use Independent Financing

One of the best ways to save money on Nebraska auto loans is to arrange your financing before you even begin shopping for your car. Dealership financing is almost always more expensive than Omaha auto loans. In fact, dealers regularly make more money on the financing of the car than the sale of the vehicle. Dealers do this by trying to get you to tell them how much of a monthly payment you can afford each month. This allows them to manipulate the numbers in order to give you a fairly low monthly payment but still charge you more in total interest expense. Dealers then get a commission on the loan’s interest rate when they sell it to a bank or other financial institution. Thus, you are better off getting an Omaha auto loan directly from an independent lender.

Be Wary of 0% Financing Loans

You may see offers for 0% Nebraska auto loans, and you may think they sound too good to be true. Usually, they are. One of three things usually happens with 0% auto loans that makes them not quite the killer deal that they seem to be. The first is that you probably don’t even qualify for 0% Omaha auto loans. Only a very small percentage of car buyers have the credit requisite to qualify for these loans. Secondly, the parties offering these loans usually compensate for the lost profit on interest by keeping the term of the loan obscenely short. You might have to pay the loan off in as little as 18-36 months. Thirdly, a dealer might offer you a 0% loan, but then they will be inflexible on the price of the vehicle so they can still make the same amount of profit.

Think about Leasing

Leasing has become a popular way to buy a more expensive car but still have relatively low monthly payments. You might consider leasing as an alternative to Omaha auto loans if you don’t intend to keep your car that long. If you know you will want to trade the car in for a new one in two or three years, a lease might be preferable to a Nebraska auto loan. Remember that leases usually come with annual mileage restrictions that some drivers find onerous. Now check out what financing pitfalls to avoid with Bellevue auto loans.