Finder may earn compensation from partners, but editorial opinions are our own. Advertiser Disclosure
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
You have plenty of new and used models to choose from, as well as a few financing options to consider. While secured car loans from a third-party lender might come with the most competitive rates, leasing or financing directly through a dealer can likely get you behind the wheel faster. Here’s how your different financing options stack up:
When comparing your car loan offers, keep these factors in mind to ensure you get the best deal:
There’s always going to be a debate over which is better: new versus used cars. For many, there’s a certain peace of mind that comes with owning a brand-new car, like having a warranty, knowing there’s no possibility of previous damage and that enticing new-car smell. However, new cars decrease in value at a steep 40% after the first three years of ownership due to depreciation.
With a used car, you’re usually able to benefit from a lower sticker price. But it might not have the latest bells and whistles that the latest model has. And while there’s a risk of not getting what you paid for, this is less likely if you go through a certified preowned dealer rather than a private seller.
While $20,000 won’t snag you a new Benz, it can get you a pretty nice car — new or used. Here are some of the top cars in your price range currently on the market:
*Prices as of November 2018.
Not sure a $20,000 car loan is right for you? Ask yourself these questions to help you decide:
If you have decent credit and want to get a loan as quickly and easily as possible, financing through a dealer might be your best bet. However, you might be able to score a more competitive deal by comparing your car loan options from banks and online lenders yourself.
Learn more about how they work and compare lenders with our guide to car loans.
It depends on your priorities and personal financial situation. Secured car loans usually come with more competitive rates — though you risk losing your car if you can’t afford repayments. On the other hand, an unsecured personal loan doesn’t require you to use your car as collateral. However, these typically come with higher rates.
This depends on the lender. Some require that your car be less than seven years old to qualify, while others have more lenient criteria. Find out more with our used car loans guide.
Maximum loan terms vary by lender, though many allow you to take up to seven or even eight years to pay back your loan.
Image source: shutterstock
Back to topKellye Guinan is a seasoned financial writer with over 500 articles under her belt spanning all things loans from auto to personal to business and everything in between. With four years in the field and five years of research experience, she's able to make complex personal finance decisions easier for anyone to tackle. When she's not up to her knees learning about the latest trends in lending, she spends her time improving her own financial literacy and expertise — and maintaining a Duolingo streak of over 1,300 days.
A portfolio tracking app that shows your net worth.
Earn rewards with this telematics program even if you aren’t an Allstate customer, though you can only receive a discount if you’re a policyholder.
Compare expansion loans for startups and established businesses.
This international bank offers term loans as low as $5,000 to business banking customers. But it’s not upfront about costs.
Earn crypto on your purchases with these cards.
Get matched with a business lender using our quiz. Funding options from $500 to $5 million.
Drivers who obey speed laws and drive fewer miles can save money with Progressive’s Snapshot
This factoring company advances as much as $15 million and offers nonrecourse factoring. But it’s not upfront about maximum rates.
This lender offers invoice factoring specially designed for construction companies. Startups are welcome — but you’ll need $20k in invoices.
Help cover your business’s day-to-day costs with a working capital loan.
OR
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
