Frequently Asked Questions about Colorado Auto Loans

Here are the answers to the most commonly asked questions about Colorado auto loans.

What kinds of Colorado auto loans do your lenders offer?

Our lenders can offer almost any type of Colorado auto loan, including those for new and used vehicles. Most of our lenders also offer auto refinancing loans for borrowers who are unhappy with the interest rates or terms of their existing car loans. Additionally, depending on your lender, you might be able to get Colorado motorcycle loans.

What is an APR and how does it affect my Colorado auto loan?

An APR, or annual percentage rate, reflects the total cost of the loan on an annual basis. APR is expressed as a percentage of the loan's principal. Unlike interest rate alone, APR takes into account all of the fees, charges, and other expenses that come with the Colorado car loan, thus providing a more accurate picture of the loan's true total cost. You want to find an auto loan with the lowest possible APR.

Should I take the dealer's rebate offer or the teaser-rate financing?

In almost every case, you save more money by opting for the cash rebate and applying it toward the purchase price of your new vehicle. That way, your loan amount is reduced, which means you will pay less total interest expense over time. The teaser rates that dealers offer on Colorado auto loans are either impossible to qualify for because of the stringent credit standards or they are a front that lets the dealer raise your costs in other areas of the deal. For example, you might get the teaser rate on your financing package, but the dealer might then be inflexible on the price of the vehicle.

I still owe money on my old vehicle. Can I just roll this debt into my new auto loan?

Some dealers will allow you to do this. In fact, they usually love it when you do because it means a windfall of interest rate profits for them. When you bundle old debt into your new Colorado auto loan, you face obscenely high interest rates, and you will immediately owe significantly more on your new car than it is worth. This is a precarious situation financially because, in the event something happened to your vehicle, you would only be reimbursed for its actual cash value, leaving you with the remaining debt from the loan. You're better off either selling your old car to pay the loan off or waiting to purchase a new vehicle until the old Colorado car loan is paid off.