Car loan questions

No. Lenditia is an educational website about car loans; it is not a lender, a car dealer or a loan broker, and it does not make credit decisions or set rates. Read more about Lenditia.

Auto lenders, car dealers and loan brokers pay Lenditia for the financing requests visitors choose to send. That payment does not shape our articles; the details are on how we make money.

Your financing request goes to auto lenders, car dealers and loan brokers who work with Lenditia, and they may call, text or email you about it. Each of them decides on its own whether to make an offer and on what terms.

No. Sending a request is free, and you are not obliged to accept any offer that follows. No one should ask you for an upfront fee to get a car loan.

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Either can work, but a loan offer from a bank or credit union in hand gives you a number the dealer has to beat. Dealer financing is a retail installment contract that the dealer usually sells to a lender, sometimes with a markup; see dealer financing and getting preapproved.

As short as the payment allows. A 72- or 84-month term lowers the payment but adds interest and keeps you owing more than the car is worth for longer; the loan term comparison shows the difference in dollars.

Enough to keep the loan below the car's value from day one, which protects you if the car is totaled or you need to sell. Our down payment guide explains how to size it, and the affordability calculator shows what a payment buys.

Usually yes. Most car loans charge simple interest, so extra payments cut the interest you pay; check your contract for a prepayment penalty and ask the servicer for a payoff quote before you send the final amount.

It can be if your credit has improved or rates have fallen since you bought the car, and if the new term is not much longer than what you have left. The refinance calculator compares the two loans, and auto refinance covers the steps.

The selling price plus sales tax, title and registration, the dealer's doc fee and any add-ons, minus rebates. Ask for it in writing before you talk about the payment; the out-the-door price calculator helps you check it.

These products are optional, and you can buy the car without them. If you want GAP, compare the dealer's price with your insurer and your lender; see add-ons, GAP and service contracts.

Generally no: there is no federal three-day cooling-off right for car purchases, so the deal is final once you sign unless your state or the dealer gives you a return right. California added a three-day return right for some used-car purchases starting October 1, 2026.

Read your contract before you sign anything new: it says what happens if the dealer cannot sell it to a lender, and you may be entitled to your down payment and trade-in back. Our page on yo-yo financing walks through your options.

The dealer pays off your old loan, and any amount you owe beyond the trade-in value is usually added to the new loan. See trade-ins and negative equity before you agree to roll it over.

It depends mostly on your credit tier, whether the car is new or used, and the term. Experian market data for the second quarter of 2026 put average rates at about 6.35% for new cars and 11.19% for used ones, with much higher rates in the lower tiers; auto loan APR explains what drives the number.

Each application usually brings a hard inquiry, but scoring models generally treat several car-loan inquiries made within a short window as one. Do your rate shopping within a couple of weeks and use prequalification, which uses a soft check, where it is offered.

Often yes, at a higher rate and usually with a larger down payment or a cosigner. See bad credit car loans and car loans with no credit for what lenders look at and how to keep the cost down.

The interest rate is the cost of borrowing the principal; the APR adds certain finance fees, so it is the figure to compare across lenders. Both appear in your Truth in Lending disclosure.

In many states, yes: motor vehicle sales finance laws cap the rate on dealer contracts, sometimes by the age of the car. Other states set no general cap. Your state's rule is on its state laws page.

Call the servicer before the due date and ask about a deferral, a due-date change or a short payment plan, and get any agreement in writing. Our guide to falling behind on car payments lists the options in order.

In many states the lender may repossess as soon as you are in default, without advance notice, as long as it does not breach the peace. Some states require a notice and a chance to catch up first; check your state laws page and our page on repossession.

Usually you can redeem it by paying the full balance plus costs before it is sold, and in some states you can reinstate the loan by paying only what is past due. The lender's notice gives the deadline; act on it quickly.

Often, yes: if the sale brings less than you owe plus costs, the lender can seek the difference unless state law limits it. See deficiency balances for how to check the math.

Start with the company in writing, then go to your state's regulator or attorney general and the CFPB. Our page on dealer complaints lists where each kind of complaint goes.