Find the Best Car Loans in Boise, ID

How to get an auto loan in Boise

The high price of cars means most Boise residents need financing to purchase one. Working with a lender to get pre-approved for a loan before you start shopping has many advantages, including letting you determine your budget and know your monthly payments before stepping onto a car lot.

You can be pre-approved for a car loan in Boise through banks, credit unions or online lenders. It’s good to keep financing options open and get quotes through multiple lenders — some may offer more affordable financing, while others may be more lenient on late fees.

Lenders in Boise have different required documents when applying for loans, but be prepared to provide:

• Proof of income: This generally involves providing pay stubs or bank statements that prove steady income. Some lenders may call your employer for verification.
• Proof of insurance: Before taking out a loan for an auto purchase, many lenders will require you to have insurance that covers the vehicle. If you currently have car insurance, talk to your provider to see how your premium will change after purchasing a new car.
• Proof of identity: Lenders will typically ask for a signed photo ID and a utility bill with matching addresses. This may not apply to those going through a bank or credit union where they already have an account.

Interest rates for car loans in Boise

One of the most significant factors in the cost of your loan is the annual percentage rate (APR). The most significant factors in determining your APR are:

• Credit rating: Lenders use your credit rating as the primary factor for deciding your APR. Those with poor credit may still qualify for a loan but will likely get less than desirable rates, often between 12 and 18 percent. Those with excellent credit typically qualify for loans with rates between 3 and 5 percent.
• Down payment: Making a more substantial down payment will lower your total loan amount, letting you reduce your monthly payments or the length of the loan. Boise resident with poor credit may be required to put down a more substantial down payment.

When comparing loans, look at the total cost of the loan instead of the monthly payments. A loan that offers lower payments over a longer term will be more expensive in the long run. By taking the time to apply for and choose a loan before purchasing your car, you can avoid getting pressured into a car loan that turns out to be a burden on your finances.