Financing an automotive transaction helps you afford the car you want by dividing a large purchase into smaller payments. Just like a set of stairs allows you to climb slowly but surely, auto loans let you pay off your vehicle piece by piece, so you have extra cash in your bank account for other obligations. 

Car loans contain many elements, like the interest rate, down payment amount, APR, and term length. Each plays a part in deciding your monthly car payment and the total cost paid during the loan. The greater the down payment, the lower the loan amount, lessening your payment month to month. 

A loan's interest rate is a percentage charged against the principal amount borrowed. Each month, the lender adds this amount to your payment, which can range from zero percent to 20 percent. Usually, borrowers with a good credit score secure lower interest rates, and vice versa for those with a bad credit history. 

Those with poor credit can enlist the assistance of a cosigner when they apply for financing, which vouches for their trustworthiness and promises to pay the loan should the applicant default. 

Typical lengths for auto loans range from 24 to 84 months, although some loan terms can be lengthier. One benefit of going with a longer-term loan is lower monthly payments, allowing you to buy something a little more expensive than initially planned, with better options and features. 

The annual percentage rate of a loan, also referred to as the APR, considers the interest rate and other charges made by a lender. When considering the cost of a car loan, the APR gives you a more comprehensive figure than the interest rate by itself. 

Buying a vehicle on the used market offers many advantages over purchasing a new one. You have the chance to save thousands of dollars and still drive off in an almost-new vehicle. But where can you go for not only a great price, but also a quality used car? Shift offers fair, no-haggle prices driven by powerful machine learning algorithms and tons of data. And at Shift, certified mechanics perform extensive 150-point inspections on every vehicle sold, and you get a free Carfax report for the ultimate in transparency. You can buy any of Shift’s cars directly online from the comfort of your home, know it has no hidden issues (from our 150-point inspection) and get a fair, up-front price.

When a car buyer needs a loan but has a poor credit report, a cosigner helps reassure a lender of the borrower’s trustworthiness. Usually a trusted friend or family member, a cosigner also promises to pay the loan if the borrower doesn’t meet their obligation.

With a cosigner on a loan, a lender sees less risk in lending money, helping those with low credit scores obtain the financing they need.

Though cosigners provide a helping hand when obtaining financing, they don’t need to be present when you trade in a car.

That’s because, at the time of trade-in, only the primary borrower has to sign the title.

Though a cosigner has obligations related to the repayment of a loan, they hold no ownership interest in a vehicle and, consequently, can’t tell you whether or not to sell or trade it in.

Trading your vehicle for your next one is a simple process that gives you some cash to put toward a new one.

Instead of the hassles involved with selling a car privately, like taking pictures and posting an advertisement, trading in is as easy as accepting an offer, signing the papers, and driving away in the vehicle of your choice. 

When you trade in a vehicle, you’ll need to bring along both the car title and registration. 

When you have the vehicle title in hand, it proves you’re the rightful owner and allows you to transfer it to the next one. Your name will be present on the title if you own the vehicle outright. However, if you’re still making payments on a loan, the name of a secured party will be listed. If you’re in the latter scenario, it helps to have either a payoff letter or a ten-day payoff amount from your lender. 

Another good practice when trading in is bringing along the registration. Since the DMV uses vehicle registrations to track crucial information like VIN, location, owner, and license plate, having yours helps reassure the party buying your car. Also, in many states, you’ll need the registration to transfer your license plate to your next vehicle. 

Though not a requirement, having your vehicle’s service records show it has been well-maintained and is reliable transportation. Since the value of a car increases the better its condition, having these records could net you more money on a trade-in. 

Once you trade in your old vehicle and decide on a new one, you’ll probably want to finance it. But who can you trust for excellent service and a great deal on financing? Shift works with a network of trusted lenders who compete for your business, so you get the best deal on financing. Applying for financing with Shift is quick and easy, with no cost or obligation. Most applicants receive approval within minutes instead of days. Financing with Shift is so convenient that nine out of 10 customers choose us when they need a loan. And after you buy your car, you can keep it running strong with Shift’s best-in-industry service contracts. With a Shift Vehicle Protection plan, not only are essential components covered, but you also receive roadside assistance if you run into trouble on the road. Help is just a phone call away, 24 hours a day, seven days a week, 365 days a year.