Most people don't really consider the auto loan until they sit down to sign the papers. However, it really is something that should be considered before even looking for a new vehicle.

If you're in the market for a new vehicle and you're looking for a Subaru, stop by C&S Subaru. They have an expert finance department that can help you figure out everything you need to know about an auto loan. Plus, their sales team is top of the line and always willing to help you out and their mechanics are expert certified. You're in good hands at C&S Subaru located at 812 Washington Street, Waterloo, IA. They will even take you for a test drive when you find your new Subaru.

Credit Score 

In order to get an auto loan, you must at the very least have a fair credit score in the low to mid 600 range. Obviously, the higher your credit score, the less interest you're likely to pay and the better chance you have at getting an auto loan. It is more difficult to get a car loan through a bank, so if your credit score is fair, you will get your loan through a dealership or another financial institution where you will be paying more money every month. 

Before applying for a car loan, you should get a copy of your credit report and make sure it is accurate. If you see things on it that you're sure do not belong to you, despite them and they can be removed. If you want to have the best credit score, you can go into the bank, dealership finance department, or other lending sources.

Shop around for the best auto loan. You don't have to just take the first one that is offered to you. The original offered loan isn't going to go anywhere. Chances are the lender isn't going to say no you can't have them now because you are looking for a better one.

Down Payment

In order to bring the amount of your car loan down, you will need a down payment. Not all dealerships and lenders require a down payment, but it will save you a good amount of money in the end.

C & S Subaru

812 Washington St
Directions Waterloo, IA 50702

  • Sales: 319-291-7321
  • Service: 319-291-7321
  • Parts: 319-291-7321


  • Monday 08:30am - 07:00pm
  • Tuesday 08:30am - 07:00pm
  • Wednesday 08:30am - 07:00pm
  • Thursday 08:30am - 07:00pm
  • Friday 08:30am - 06:00pm
  • Saturday 08:30am - 06:00pm
  • Sunday Closed

If you have a vehicle, you can trade-in if you want to do that, in addition to a down payment for a lower loan amount and less interest and shorter loan terms. However, if a dealership offers you $500 for your vehicle and the neighbor offers you $1500, then go with the neighbors' offer and add that amount to your down payment. It all comes out the same at the end of the day. The amount of money you put down, regardless of where it came from, is the same.

Understanding the Terms of the Auto Loan 

Before you set out to look for a new vehicle, do your homework and research auto loans and find out the commonly used words and their meanings and learn everything you can (even if you need to take notes to bring with you), education is power. Plus, you do not ever have to agree to the first offer or counter offer. 
Remember you will be the one who owns, pays for, services, and drives the vehicle at least until it is paid for, so take your time and take a few days to think about it and talk it over with family or friends to get their input before you make a final decision on purchasing and loan terms. 

Getting a Loan

It's a good idea to get pre-approved for an auto loan before you start haggling over a price. If you have great to excellent credit, you won't need to apply for too many loans. In fact, search and find the best loan for you and then apply. If you have good credits, fill out a few or as many as you would like until you get preapproved. For fair credit, try a few lenders if you get approved with terms you like - great if you don't, then see what the dealership has to offer for an auto loan. If you have bad credit, you can probably still get an auto loan, but it will most likely come from the dealership (which isn't necessarily a bad thing), it's just a more expensive thing. But a more expensive car loan and a new car are better than no loan and no car! Be patient and be smart. You will find an auto loan you can live with.