#best auto loan rates
What Kinds of Florida Auto Loans are There?
Depending on your vehicle needs, there are a number of different types of auto loans available from Florida institutions like local banks and credit unions.
New Florida Auto Loans: These auto loans are for new model vehicles that were never pre-owned. Since they pose a lower risk of malfunctioning or breaking down, lenders tend to offer these loans at lower rates compared to used auto loans. Terms range anywhere from 24 months to 72 months for repayment, giving Florida borrowers ample time to make payments each month.
Used Car Loans: Lenders typically offer used car loans at higher auto loan rates, because they are riskier for lenders. For example, unlike a new car that may only encounter maintenance issues after the loan has been completely paid off, used cars can run into a number if problems from maintenance to repairs that could push borrowers into default. Also, due to the risk some lenders cap off the repayment term maximum to 60 months.
Auto Refinance Loans: If you already have an auto loan on your hands that has a high interest rate tacked onto it, you may benefit from auto refinance loans. Auto loan refinancing involves another institution paying off your primary lender in full for the loan amount; afterward, borrowers repay the new lender under different terms and often a lower interest rate.