MAKE A WISE DECISION WHILE PICKING AN AUTOMOBILE LOAN

1. Types of auto loans: 
There are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an intermediary between the bank or financial institution and the consumer.

2. Know the Big Picture:
The terms of the auto loan will determine the amount one pays on spot and how much the loan costs overall. A low cost now may not mean low total costs in the big picture. Many borrowers choose a low down payment which usually increases the total cost of the auto loan (a person owes more on the vehicle than it is worth)

3. Avoid Prepayment Penalties:
One should always go for flexible loans. One should look for a lender that will allow you to make extra payments or pay off the loan entirely without any penalties.