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Similarly, a loan taken out to buy a car may be secured by the car. The duration of the loan is much shorter – often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. In a direct auto loan, a bank lends the money directly to a consumer. In an indirect auto loan, a car dealership (or a ...
Legally, an indirect “loan” is not technically a loan; when a car buyer obtains financing facilitated by a dealership, the buyer and dealer sign a Retail Installment Sales Contract rather than a loan agreement. The dealer then typically sells or assigns that contract to a bank, credit union, or other financial institution.
Ally Financial Inc. (known as GMAC until 2010) is a bank holding company incorporated in Delaware and headquartered at Ally Detroit Center in Detroit, Michigan.The company provides financial services including car finance, online banking via a direct bank, corporate lending, vehicle insurance, mortgage loans, and other related financing services such as installment sale and lease agreements.
The application fee is capped at $20, and you’ll pay no more than 28 percent in interest. This makes payday alternative loans more affordable than car title loans and some bad credit personal loans.
Lower interest payments: Home equity loan interest rates tend to be less than auto loan interest rates, and if you have good credit you may qualify for rates that currently are as low as 6.75 percent.
A car title loan is a secured small loan, usually for 25 to 50 percent of your vehicle’s value. These types of loans tend to be much more expensive than conventional personal loan options, even ...
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