Don't put the cart before the horse - secure auto financing in Texas before selecting a vehicle. As a business owner, even a single purchase (as opposed to a fleet purchase) can amount to a sizable investment for your business. By comparing loan programs for financing a car in Texas, you can be sure you are securing the best deal for your business budget.
When shopping for Texas automotive financing, remember that interest rates on used vehicles are generally higher than new vehicles. In addition, you will be able to finance a new vehicle for a much longer term. Weigh all of these factors before making a final decision. So, what are your options when comparing ways to obtain Texas auto financing?
1. Banks and credit unions offer competitive rates for vehicle financing in Texas.
2. Finance companies offer convenience and often have less restrictive requirements.
3. Automobile financing in Texas dealerships will usually cost you more, but exceptions in the form of incentives can make a big difference.
Action Steps
The best contacts and resources to help you get it done
Consider financing a car in Texas using your bank or credit union
Auto financing in Texas banks and credit unions is one of the best ways to obtain needed credit. As a business owner, you should already have an established relationship with the financial institution. Obtaining auto financing in Texas through your bank will give you the best opportunity for low rates and convenient terms.
I recommend: NavyArmy Federal Credit Union uses a pricing structure called Relationship Rates. With this program, your overall rate can be discounted based on your credit history and your membership history with the credit union.
Texas Bank and Trust offers a number of loan programs and lines of credit to get financing when you need it.
Get Texas automotive financing for less-than-perfect credit
Even if you have had credit problems in the past, auto loans in Texas can still be found. Some companies making car loans in Texas specialize in customers with imperfect credit. You may be able to pre-qualify regardless of past credit challenges. Typically, these programs carry higher interest rates; fortunately, they are willing to work with borrowers who need a second chance.
I recommend: Austin Car Finance and Auto Loans has established relationships with a wide range of lenders. They will shop a number of Texas car credit programs for you and find the best fit for your situation. For those with a long history of financial problems
1st Investors Financial Services may be the best solution. They specialize in financing those with recent credit issues.
Investigate Texas car credit programs at the dealership
Auto financing in Texas dealerships can look very appealing. Dealerships often offer rebates, incentives and special rates as an impetus to use their lenders. However, the dealership is the middleman which means a mark-up on the interest rate. Compare the special financing package with the loan program from an outside lender to make sure you are making the most of your dollar.
I recommend: Earth MotorCars has financing terms up to 84 months. They have eliminated sales commissions from their business structure keeping overhead low so they can pass those great financing rates on to their customers.
Passport Motors is known for their customer satisfaction. Contributing to that are their low financing rates and terms up to 96 months.
Tips & Tactics
Helpful advice for making the most of this Guide
- You may be able to improve your deal by negotiating the price based on outside financing. When you have agreed on a price, tell the dealership what you type of Texas vehicle financing you have secured and see if they can beat it.
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