Securing an Auto Loan before Buying a Car: No Lemonade from Lemons! (cont.)
Contributed by Alix Mcmurray
Compare the Annual Percentage Rate (APR) offered by various financial institutions.Compare monthly payments over different loan "lifespans" -- 2-year, 3-year, etc. What you may save on the short-term through a low monthly payment may cost you on the long-term through a much greater loan pay-off amount. Only after obtaining the terms and conditions you are comfortable with, you can then go about applying online, at which point you should be directed to a secure site.
While You Browse for Your Auto Loan, Do a Convenient "Lemon Check"
Many auto loan websites also have a built-in feature by which you can do a "lemon check," that is, look up your prospective car's history to make sure that it is indeed, not a lemon. A defective car or "lemon" is one which is plagued by problems impairing its use, safety or value in spite of reasonable attempts at repair. Every state now has a Lemon Law that applies to car problems encountered in the first year or first 12,000 miles of ownership.
You can look up your car through its Vehicle Identification Number or VIN. This is the unique 17-character number assigned to all cars and light trucks built after 1981. Many websites will give you instructions on where to find the VIN number in your car. Contact your state's Lemon Law administrator -- they can give you the procedures to file a claim. So, happy shopping for that auto loan, and remember to keep lemons out of your shopping cart!
