Find the Best Auto Loan Companies in Sioux City, IA

Comparing auto loans in Sioux City

Before accepting a loan offer, shop around and get quotes from multiple lenders. Credit unions and banks typically offer simple interest loans, and most provide approval letters that are good for 30 days so you can take the offer to a dealer or other lenders to compare and negotiate. Online auto financing specialists that specialize in bad credit loans will work with you to find the best deal for your budget and credit score. You might find no-money-down loans, precomputed interest loans or secured loans that require collateral.

Before making a decision, compare auto loan interest rate, down payment, term length, fees, limits on vehicle price and/or age, turnaround time for funding and eligibility requirements.

• Down payment is the amount you pay upfront for the vehicle. A good car loan down payment for new cars is 20%, which keeps you from owing significantly more than the value of the car. Buyers with subprime credit often have a minimum down payment of 10%. The car loan down payment depends on purchase price, type of financing and lender.
• Auto loan taxes and fees are factored into the amount you owe. Some lenders allow borrowers to include taxes and fees in the loan, while others require upfront payment. Iowa charges a 5% one-time registration fee when consumers purchase a vehicle. Common fees include processing fees, financing fees, document fees and DMV fees, like title and registration.
• Interest rate is the amount the lender charges you to borrow money over time. It is part of the annual percentage rate (APR), which also includes fees. Simple interest loans and car refinancing loans for borrowers with good credit typically have interest rates ranging from 4% to 5% at the time of publishing. Customers with lower credit scores can expect to pay higher interest rates.
• Term length is the time it will take to pay off your loan. A short term works well for buyers who want to pay off the loan quickly to save money on interest. A longer term comes with lower monthly payments, but you will pay more in interest over time, resulting in a higher overall loan cost. Typical term lengths on simple interest car loans range from 24 to 84 months. Car refinancing loans typically range from 12 to 72 months.

Considering all these loan features, you should gather information to compare your monthly payments and overall loan cost at different rates using an online loan calculator. For example, take a 2018 Chevrolet Impala that sells for $27,700. With a down payment of $5,000 subtracted from purchase price, you would finance $22,700. Monthly payments on a 60-month loan at 4% interest would be $419, while overall loan cost would be $25,150.

The same scenario with an interest rate of 7% translates to monthly payments of $450, with an overall loan cost of $27,000. The interest rate makes a significant difference in how much you pay overall, so gather multiple quotes and shop around for the lowest rate for your situation. Run the numbers to understand the true cost of financing.

How to get a car loan in Sioux City

Most Siouxland lenders require a few items to determine eligibility. These include:

• Your credit report
• Proof of income
• Driver’s license
• Proof of residence
• Your address and phone number

Check your credit report for free before applying for a car loan in Sioux City, so you can address any inaccuracies on the report beforehand. The car loan approval process is generally quick. Lenders look primarily at your credit score and income.

While borrowers with good to excellent credit will have more choices for low rates, customers with fair or poor credit still have options for auto loans. Talk to an auto financing specialist to help you find lenders that provide car loans for bad credit. Consider a used vehicle with a lower purchase price, so you won’t have to finance a large amount at a high interest rate.

Car loans generally come with fees. Some lenders roll fees into the loan amount, while others require upfront payment. Common fees include document fees, title and registration fees, processing fees and financing fees. Some types of loans, like secured loans for bad credit, require collateral. Examples of collateral include another vehicle you own, your home equity or a savings account. These assets can be collected by the lender if you fail to pay the loan.

Sioux City auto loan FAQ

Can I get a car with no down payment?

No-down-payment car loans are available from dealerships and other financing companies. Credit unions and banks also provide 100% financing on no-down-payment loans for qualified customers.

When should you refinance your car loan?

You should refinance your car loan if you qualify for a lower interest rate that will save you money on the overall cost of the loan. If you have high monthly payments that stretch your budget, you can consider car loan refinancing, but make sure understand the total cost of the loan.

What happens when you pay off a car loan early?

Some lenders offer car loans with no prepayment penalties if you decide to pay off the loan early. The amount on your statement might not be the actual amount you owe — ask your lender for a “payoff amount” if you want to settle your loan. The payoff amount could include interest that has accrued since your most recent payment, along with any fees that were added to the loan balance initially.

How much are payments on a $15,000 car?

Payments depend on interest rate, term length and down payment. Use an online car loan calculator to plug in the numbers and figure out monthly payments on any purchase price and scenario. For example, with no down payment, payments on a $15,000, 60-month car loan at 5% interest would be $284.

What is the average monthly car payment in Sioux City?

The average monthly car loan payment in Iowa is $323 for used vehicles and $519 for new vehicles, according to AutoWise.