Best Car Loans in Bakersfield, CA

How to get an auto loan in Bakersfield

Shopping for a car in Bakersfield can be exciting at first, but the actual buying process — especially if you have to arrange for a car loan — can be time-consuming and frustrating. While it’s tempting to immediately start looking for a new car, getting pre-approved for an auto loan lets you:

• Know your budget before shopping for cars
• Compare rates from several loan offers
• Understand the rates you’re likely to receive
• Potentially negotiate a lower rate from the dealer
• Save time by having cash deposited in your bank before shopping

Many options exist when shopping for an auto loan. Banks, credit unions, online lenders and dealerships all offer vehicle financing for a range of customers in Bakersfield. To qualify for an auto loan, be prepared to meet the following basic requirements:

• Age 18 or older
• Government-issued identification
• No active bankruptcies
• Proof of income
• Proof of residence

Comparing auto loans in Bakersfield

Many lenders in Bakersfield require borrowers to have good or excellent credit to qualify for a car loan. In general, the higher your credit score, the lower your annual percentage rate (APR). Those with poor credit should expect a higher APR. Typical APRs on auto loans range from 2.5 to 15 percent.

Other than APR, things to consider when comparing auto loans in Bakersfield are:

• Loan term: Auto loans are offered for terms typically ranging from one to seven years, generally paid in monthly installments. Some lenders offer discounts on interest charges if you set up automatic payments from your checking account. Ask your lender about prepayment penalties if you decide to pay the loan off early. Also ask about perks like “skip a payment” or a delayed first payment.
• Down Payment: Most auto loans do not require a down payment, but putting money down on a vehicle helps lower your interest rate because you’re financing a smaller amount. If you can afford to make a larger payment up front, it reduces the total cost of your loan.
• Fees and other costs: In general, auto loans do not have an origination fee. Ask the lender about any fees that accompany the loan, and look for lenders that charge minimal fees. Make sure your loan amount is large enough to cover other costs, including title and registration fees, state sales tax and insurance costs.

In California, the Car Buyer’s Bill of Rights regulates certain aspects of sales at licensed car dealers. Military families should know their rights under the Servicemembers Civil Relief Act, which caps interest rates at a certain level and provides benefits for borrowers.