Is an Auto Loan a Good Idea?

Whether or not you choose to get a loan to fund a major purchase like a car will depend on your personal financial situation. Financing a car may be a good idea when:

• You need a vehicle, but you’re unable to pay for it in cash.
• You’re able to lock in a low interest rate, so you won’t add too much to the overall cost of the car.
• Your monthly loan payment will be reasonable and won’t add stress to your budget.
• You’re certain you can make the loan payments on time.