Auto Loans

Financing a new vehicle requires as much consideration as choosing which make and model to buy. When deciding on a car, truck, van or recreational vehicle, you may consult a specialist – a consumer manual or a mechanic. Financing a vehicle requires the same fact-finding approach. To find the best financing, the most flexibility and plan that is tailor-made for your needs, consult a financial specialist – Farmers State Bank.

Finance First

Let us know that you are considering buying a new car. We will be able to examine your financial situation and tell you how much you can afford to spend. In addition, we may have valuable information about certain types of cars and trucks to help your make an informed decision.

Arrange for financing before you shop for a car. To insure that you get the best deal, it’s important to negotiate the price of the car separately from financing. Always regard financing as a separate transaction to insure the lowest price on the car and to accurately compare the cost of financing.

Many automobile manufacturers offer reduced-rate financing to promote certain lines of cars and trucks. Consider these offers carefully; they may actually cost you more. For example, these models may have higher sticker prices or may require a higher down payment.

Accepting reduced-rate financing could also mean that you receive less for your trade-in. Also, the lower finance rate may only be available on certain makes and models.

When a manufacturer offers a choice between reduced-rate financing and a factory rebate, ask for a comparison between the two. The salesperson should be able to calculate the long-term differences while you wait. You will probably save money by taking the rebate and financing the purchase through Farmers State Bank.

Examine Finance Options

Only we can offer you a number of financing options.

A home equity line of credit, borrowing money against your house, may be available if you own your home. The home equity line is a form of revolving credit in which your home serves as collateral. By using the equity in your home, you may qualify for a larger amount of credit at a relatively low rate of interest. Under the current tax law, you may be able to deduct the interest because the debt is secured by your home.

Traditional second mortgages are also available. This type of loan provides you with a fixed amount of money repayable over a fixed period. The payment schedule usually calls for equal payments that will pay off the entire loan within that time. You may want to consider a second mortgage instead of a home equity line if you need a set amount of money for a specific purpose.

Seek Loan Flexibility

Farmers State Bank can offer flexible terms to suit your needs. Auto dealers offer a limited choice of financing usually in the form of reduced-rate financing or a cash rebate, which may limit your ability to negotiate a better price on a car.

If your credit rating is good, you may be eligible for a lower down payment on a car. If you have difficulty making your payments, you have the opportunity to discuss the situation with us, something you can’t do with a major car manufacturer.

Farmers State Bank can also tailor a financing rate and a payback schedule especially for your financial needs. We can tell you what price range best fits your budget and how long it should take to repay your auto loan. While the time it takes to repay car loans varies, we will help you plan a payment schedule that ends before the car is no longer useful to you.

Prepayment penalties may be higher with manufacturer financing if you choose to pay off your loan early. Car loans made by banks usually do not have any prepayment penalties, discuss with us and avoid any surprises.

Compare Prices

After you have arranged for auto financing, compare car prices at several dealers before you make your car purchase. The price of the same car at two different dealerships may vary.

You are likely to save money if you are willing to select your new automobile from the dealer’s inventory, rather than ordering a model to your specifications. By purchasing from inventory, you’ll also get immediate delivery.

Decide on the “Extras”


If you decide to purchase the “extras” such as rustproofing or an extended warranty, be sure you know exactly what you are paying for before you buy. Compare the price of rustproofing available at the dealership with the price of the same service at an independent dealer in your area. Also, be sure your new vehicle has not already been rustproofed.


As modern automobiles become more complex and more expensive to repair, more people are opting for extending warranties when they purchase a car. Although these warranties can provide car buyers with a feeling of security, they may not cover the cost of repairs caused by wear in the later years. Consider carefully the extra cost of the warranty and be sure to find out exactly what repairs will be covered.

Talk to us before you purchase your next vehicle. We can offer you a variety of financing options and can provide you with reliable information to help you make the best buy.