When you are planning to buy a brand new or used car, you need to perform an interest rate car loan comparison. The existing car loan rates during your purchase influences your plans on how to repay the amount you owe from a lender. This also helps you calculate the entire amount that you need to pay for the interest of the loan. Best car loan rates require extensive research and greater understanding in order to determine how these rates work.
Understand how loan rates are obtained
Before choosing the best car loan interest rate, you need to understand how the rates are calculated. Avoid selecting loans with the lowest APR or interest rates abruptly for these might have hidden charges. Try to determine the differences between the Annual Percentage Yield and the Annual Percentage Rate so that you will have a greater understanding on how to select the best loan rate from everything that is offered.
Use a loan calculator
You can also use an online calculator to help you calculate the interest of each loan.