Find the Best Auto Loan Companies in Billings, MT

Comparing car loans in Billings

To find the best rate for your financial situation, contact multiple lenders for auto loan quotes. Compare rates from dealers, banks, credit unions and auto finance specialists. Most banks and credit unions offer simple interest loans that are secured with the vehicle itself.

Check for lenders that don’t charge a prepayment penalty if you choose to pay your loan off early. Consider down payment, term length, fees and monthly payment.

• Taxes and fees: Taxes and fees depend on your loan type and amount. Unsecured loans or refinancing loans typically have higher fees. The lender should inform you of all fees before you sign the agreement. Credit unions often have lower fees. Montana has no sales tax.
• Down payment: An auto loan down payment is the amount you pay upfront for the vehicle. A sizable down payment keeps interest rates and monthly payments lower, saving you money over time.
• Interest rate: The interest rate is the amount the lender charges you to borrow the money. A good car loan interest rate at the time of publishing for customers with good credit is 4% to 5%. Buyers with excellent credit might find rates from 1% to 4%, while subprime credit scores get rates that can go up to 18%.
• Term length: Term length is how long you take to pay off the loan. A long term length is good for borrowers who want a low monthly payment. A short term length works well for customers who can afford to pay off the loan quickly. Secured simple interest car loans range from 24 to 84 months, while unsecured loan terms are shorter.

When shopping for auto loans, compare features to find which type best fits your financial situation. Using interest rate, term length and down payment, you can plug numbers into an online loan calculator to estimate your monthly payments. Keep in mind taxes and fees could be extra. You can ask dealers for an “out the door” price to help you get an accurate quote.

For example, consider a 2017 Chevy Impala with purchase price of $27,700 with a down payment of $2,000 ($25,700 financed). At 4% interest for 60 months you would pay $473 per month. By the time you finish paying the loan, the total cost of the loan would be $28,380. For the same car with a loan at 7% interest for 60 months, monthly payment is $509. Overall cost of the loan is $30,540.

How to get a car loan in Billings

The application process for an auto loan requires proof of identity (passport or driver’s license), proof of income, credit history, address and Social Security number. When deciding if you qualify, lenders primarily consider credit score and income. Some lenders have options for customers with low credit scores or those building credit history. Auto financing specialists can work with you to find a loan that fits your situation. After approval, you will get a loan offer. Most lenders do not require you to decide right away, but the dealer might be eager for you to sign the contract. You can get approved by a bank or credit union before visiting a dealer to compare offers or be prepared to purchase if you get a good deal.

Be aware of all fees before accepting a loan. Ask about financing fees, funding fees, document fees and title and registration fees. The annual percentage rate (APR) of a loan includes interest plus fees. Some types of auto loans require collateral, such as short-term secured loans. Lenders might accept the vehicle itself, another vehicle you own, your home equity or a savings account as collateral. If you fail to repay the loan that property will be collected by the lender.

Billings auto loan FAQ

What is the average monthly car payment in Billings?

The average monthly auto loan payment in Montana is $289 to $499, according to AutoWise.

Does preapproval guarantee a car loan?

Preapproval does not guarantee a car loan. If your financial situation changes, for example, you could still be denied a car after getting preapproval. Ask the lender you get preapproval from about the circumstances where you may still be denied a loan after preapproval.

What is the average APR for a car loan?

The average APR for a car loan is around 6%. APRs range from as low as 2% to as high as 20% or more, depending on credit score, loan amount, age of vehicle and loan term length.

Do multiple car loan applications hurt your credit?

If you apply for a car loan, the lender makes a “hard inquiry,” which can lower your score slightly. Credit reporting agencies treat multiple inquiries in a short period of time as a single inquiry.

How much can I borrow for a car loan?

The maximum car loan amount depends on the lender and your current financial situation. Check with various lenders to find out the maximum amount you can borrow for your car loan in Billings.