Dealing with new car auto loans is something that not everyone has experience with. If you have never dealt with a new car auto loan before, then you really do not know what to expect. Buying a new car can be an exciting time in your life and an auto loan is the usual way to buy them. However, if you do not understand how new car loans work, you could end up getting in over your head. Here are a few things that you will need to be aware of if you are considering a new car loan.

Typical Term

The most common term for a new car loan is a 60 month loan. The loan has a fixed interest rate which will result in a fixed monthly payment over the entire 60 month period. Some car dealers are offering a 72 month auto loan now as well. Therefore, you might be able to lower your payment with the longer term.

Gap Coverage

Something else that you will need to be aware of is the gap coverage that they will offer you. This is usually a good thing to get. It will keep you from being left upside down on your loan if you are in a wreck. 

blog comments powered by Disqus