6 Best Car Financing Options in Michigan
Nowadays, people have many options for financing a car. Auto manufacturers offer low interest rates, banks provide loans with competitive rates, and car dealers offer enticing deals. So the question in your mind is, what are the best car financing options in Michigan for me? A good strategy is to compare various options.
Your search for the best car financing options in Michigan is not complete without considering the following options: Banks and Credit Unions Banks and credit unions often have the most affordable auto loans, and they offer flexible terms. Some will even offer no down payment loans or loans for bad credit. However, some banks and credit unions will not provide loans to borrowers with low credit scores. Dealerships offer some of the best auto loan rates, but they tend to be more expensive than other options. Online Lenders: Online lenders favor borrowers with low credit scores or bad credit. They may not offer the same loan terms as traditional lenders, but they offer competitive interest rates and lower loan default rates. Bad Credit Loans: If you don’t have a credit score, consider using a secured, bad credit loan instead. Secured loans are loans that require collateral, such as a home or car. Since the loan is backed by collateral, lenders feel more comfortable lending to you despite the bad credit score. Personal Loans: You can opt for personal loans if you fall under low- to moderate-income individuals and families. Personal loans do not need collateral.
A Look into some of the Best Car Financing Options in Michigan
LightStream
LightStream offers online auto loans to people with good credit scores to the tune of up to $100,000 and gets a rate as low as 3% APR. LightStream is an online lending agent that helps car buyers get the best car financing through a quick and easy online application process.
Capital One
Capital One offers a large selection of models, competitive rates, and the advantage of having monthly payments deducted from your checking account without ever affecting your credit rating. With simple qualifications and an easy application process, you can get on the road in no time.
GM Financial
General Motors Financial offers financing for great cars at very competitive rates, and you can apply online in a few minutes and get an immediate decision. You can get loan amounts of $7,500 to $125,000, and you must have a credit score of 550 and higher.
Bank of America
Bank of America provides diverse financing options for new and used vehicles. Their online finance application contains many different loan term options. Bank of America’s current interest rate on auto loans is 2.59% APR with loans starting at $7,500 for terms up to 72 months.
Ford Credit
Ford Credit offers flexible financing options for both new and used vehicles. You can complete their online application for financing in less than 10 minutes. The application includes your entire credit history and a list of co-applicants available to help you apply for a loan. Interest rates vary depending on their car financing options.
Carvana
Carvana is an excellent option to consider for financing your next new or used car purchase. Their website is user-friendly, and they offer competitive rates and flexible options. Other than their easy online application and short approvals, they also offer free delivery of the vehicle straight to your doorstep.
You can be driving in just a few days. Once Carvana approves you, you can take the car for as long as you need to check it out closely. Then, once you’re comfortable with your purchase, schedule a pick-up time, and they will deliver it right at your door!
Carvana’s approval process is fast and easy. Your online application can get approved within minutes. If approved, you can choose from a list of available cars and schedule a delivery date. In addition, their website has a built-in calculator to have a reasonable estimate of your monthly payments.
Your Final Thoughts
Are you in for a new or used car? Your first step is to find the best car financing options in Michigan among the many dealership financing, credit unions, online lenders, and subprime lenders.
Dealerships operate on slim profit margins, so it’s in their best interest to finance you through their programs. If the dealer declines our loan at a car lot, ask if they can offer you a better rate through a different lender.
Shopping for online auto financing is the next best option. Some dealerships offer online-only funding, and that’s an excellent place to start. If you don’t qualify for a loan with the dealer, try other online lenders, including online-only subprime lenders.
If you’re having trouble getting financing, a credit union might be your best option. A credit union is a cooperative, so its members, not shareholders, own it. These banks typically offer the best rates, but you’ll need to apply personally and be approved.