4 Things GREAT Car Loans Have In Common

Low Interest Rates

Now, low interest rates are the cornerstone of a great car loan. All smart borrowers want the lowest interest rate that they can find. Why? Low interest rate means that you are paying the LEAST amount of money to borrow for your car loan. It means that borrowing is cheap and a real asset. Only people with decent credit typically get the best interest rates, but the thing about credit history is that it is malleable, it can improve and it is something that can be turned into a true asset. This is why we preach responsible credit usage.

Short Duration

Who wants to be strapped in a car loan forever? For crying out loud, it is a car not a house and we expect depreciation. With a home you expect 15-30 years to pay it off, and you expect it to increase in value. A car on the other hand is a liability, it is not a financial asset (save for certain supercars that are worth millions!) so it makes sense to pay off your car loan as soon as possible, and before the value of the car depreciation too much.

Low Monthly Payments

Everyone loves low payments because it fits our monthly budget. It means that we have a car loan that won’t be difficult for us to pay each month. When you match low payments with the other two things we’ve already mentioned (low-interest rate and a low-duration loan), then you truly have the bee’s knees of lending. To get these things all in one loan typically says a lot about you more so than your lender. It means that you likely have really good credit, that you pay your bills on time, that you have a great credit utilization ratio, and that your record doesn’t have chargebacks and defaults on it.


Unlike awful loans and lenders, great car loans are always transparent and these lenders make sure that you understand EVERYTHING about your loans. You are never hit with any surprises or borrower’s remorse, which is a term we have for when borrowers become disappointed in their loan for various reasons that were not clear when they signed their loan. When you get the very best car loan, everything is on the table, you know what you are getting, you know what to expect, and you are happy to agree with these terms.

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