It’s time for a new car! The first step is to find good financing – we prefer local, of course. Before you apply for a car loan, make sure you get the facts! When you are looking for car loans in Reno, you want to keep in mind that the loan rates, terms, and conditions can be different for each lender.
Reno Car Loan Rates
Loan rates vary depending on what the loan is being used to finance. For car loans, the interest rates are determined by a series of factors. At Great Basin FCU, our car loan rates in Reno are determined by factors such as your credit score, the car’s year and model, and the term or length of the loan.
Two of the largest financial factors are your credit score and your debt-to-income ratio. The credit score tells the lender about your financial history and behavior, while the debt-to-income ratio sheds light on the ability to pay the lender back. The lower your debt-to-income ratio, the more likely lenders perceive you as able to pay back the loan. The car’s year and model help the lender assess the value of the car, which affects the amount of your loan.
Car loans use simple interest instead of compound interest, so interest only accrues on the principal. This means that you are never paying interest on interest, and that’s a good thing. Since the principal gets smaller as you pay off your loan, you’ll be paying less to interest and more to principal with each payment. This happens because the interest is only building on the remaining principal of the loan.
Car Loan Terms for Your Reno Vehicle
When you apply for a car loan in Reno, make sure to keep in mind the term of the loan as well. Car loans with shorter terms may have a lower rate. Car loans with longer terms can have a higher interest rate, so even though the monthly payment will be smaller, the overall cost may be more.
Car Loan Refinancing
Refinancing your car loans in Reno can make a big difference to your wallet! If rates have changed or you have improved your credit score since you took out the initial loan, you can refinance your car loans to get a lower interest rate. Not only will it lower your monthly payment, but it could save you thousands in interest over the life of the loan. You may also have the option to extend the loan term when refinancing and have cheaper monthly payments. Though you will have to pay longer and ultimately more in interest, this refinancing option can be helpful if you have experienced a loss in family income or a financial downfall.
Car Loans with Reno’s Favorite Credit Union
At Great Basin FCU, we offer credit union members car loans in Reno with interest rates as low as 2.49%. On new car loans in Reno, Great Basin FCU can finance up to 100% of MSRP, or the manufacturer’s suggested retail price. Our new car loans can also include Guaranteed Auto Protection and can last up to 84 months. On car loans for used cars in Reno, we will finance up to 100% of the car’s value determined by Kelley Blue Book. We can also include the Guaranteed Auto Protection and warranty.
Looking to refinance a current car loan to have lower payments? We can help with that! In 2015 alone, our credit union members saved over $1.2 million by refinancing their car loans with us. Our Great Basin FCU loan processors can consult with you to help you with your car loan application or with your refinance. Apply for a car loan at Reno’s Great Basin FCU today!Share: