Posts tagged ‘auto loan rates’

Useful tips to obtain an excellent auto car loan rate

Excellent auto car loan rate is offered by lenders to qualified applicants only. In case you are qualified for the requirements they place in order to get these rates, you should take advantage of this. Excellent car loan rates allows you to save money from the car purchase and at the same time helps you pay the loan off on time. However, you also need to consider some tips in obtaining these rates. This article provides you with the useful tips to help you secure what you been looking for from a loan deal. These tips are as follows:

1. Know your credit history

Knowing your credit history as well as the credit score you possess helps you to determine whether you qualify to obtain the best auto car loan rates or not. Lenders most of the time use the loan applicant

Useful steps in finding the best auto loan rates

Being able to find the best auto loan rates allows you to save thousands of money from purchasing a vehicle. Doing the search for the best rates at present is more manage and involves lesser time due to the abundance of websites that assist you on how to do this. You can easily locate the best rates with just a few clicks of the mouse. Besides this, you can also apply some of the steps included in this article.

Step 1: Check the rates offered by the nearest banks

One of the effective ways to find the best auto loan rates is by checking the loans offered by the nearest banks. Banks usually offer more competitive rates compared to other lending institutions since they are involve in providing different types of loans.

In order to obtain the best rates offered for a car loan, it is advisable to do business with banks that you previously dealt with. They would probably offer you the best loan rates since you are one of their previous customers. In addition to this, you no longer need to develop a new relationship with this bank since you already have a record with them.

Step 2: Know your credit record

It is also important to know your existing credit record and current FICO score before going to lenders and apply for loans. This is because you would probably have an idea about the type of loans that you would qualify for. Always remember that a good credit holder qualifies to more type of loans compared to a bad credit holder. In addition to this, a good credit holder usually gets a lower interest rate and a bad credit holder obtains higher interest rates.

Step 3: Use online loan comparison tools

You can also make use of the websites that provide loan comparison tools. You only need to provide the site with the needed information about yourself and the available car loan rates. Through this, the site would provide you with the necessary information as to which of the available loans offer the best rate that suits your needs.

Useful tips in selecting the best auto loan rates

Selecting the best auto loan rates allows you to save money from car buying. You can use these savings for other expenses such as for maintenance and repair of the vehicle in the future. In addition to this, getting the best rates from a loan helps you pay the remaining loan balance off and gain full ownership of the car. However, you need to take some useful tips in selecting the best loan rates. This includes the following:

Tip Number 1: Know the effects of your credit record with the loan rates that you can avail

Knowing the relationship of your credit report with the car loan rates helps you select the best loan rates suited for your current credit status. You can request a copy of your credit report from one of the credit reporting agencies. Take note of the entries incorporated on the report. This would help you determine your credit worthiness.

Always bear in mind that a positive credit record allows you to obtain the best loan rates offered by lenders as well as the number of loan deals suited for you. A negative credit record on the other hand reduces the number of loan offers applicable to your credit situation.

Tip Number 2: Take note of the available loan terms

Besides looking upon the available loan rates you should also check the terms of the loan offered. You might get lower monthly premiums but you would eventually be paying more than what is necessary. Select a shorter loan term as much as possible. Although it involves higher monthly payments compared to long term loans, a short term loan allows you to pay the loan off early and provides you savings from paying too much on the loan

Factors affecting car loan rates

Most auto financing companies keep a checklist of the factors that they consider in calculating the car loan rates they offer to loan applicants. These rates eventually affect the amount of payments involved in most loans. In case you decide to obtain a car financing there is a great need for you to understand these factors. Knowing these allows you to determine the payments to expect and help you figure out a realistic budget for the financing. These factors include the following:

1. Credit score

The credit score you own affects the loan rates that you would qualify for. The credit score is calculated based on your credit report. The report includes the record of your previous loans and how you performed in making the payments for such. In case you possess a good credit record, your credit score is probably high which allows you to qualify for loans with lower interest rates. If your credit record is bad, this could also mean that your credit score is low and you only qualify for loans with higher interest rates.

2. Type of car subjected to financing

The type of car that you intend to purchase through financing also affects the loan rates that you would be paying. Purchasing a used car through financing most of the time involves lower interests and monthly premiums. This is because the price of a used car is lower compared to a brand new one.

Financing a brand new car on the other hand might involve higher interest rate and monthly premiums. This is because brand new cars are relatively expensive. Since the price of the car is high, you need to obtain higher amount of loan to purchase this. Thus, you are required to pay more interest.

3. Loan term

The loan term affects the car loan rate. Short term loans involve less interests and higher monthly payments. The good thing in this type of loan is that you can easily own the car by paying the remaining loan balance in a shorter period.

Long term loans on the other hand involve lower monthly payments but longer period to pay the loan off. In this loan term, you are paying greater interest since the loan lasts for a long time.

Top secrets to obtain the best auto loan rates

Almost all of the car buyers want to obtain the best auto loan rates that are available. Getting these rates however involves extensive research. The internet and reputable sites such as can be your greatest tool in doing the research. Through this, you are able to check out the best loan rates that are available. Besides these, there are other ways on how to get affordable loan rates. Most of these ways are kept secret by most car buyers and owners. You might want to check some of these such as the following:

1. Check your spending capability

Before you decide to purchase a car through financing, it is important for you to determine your capability to spend. You need to be realistic in doing this in order to avoid getting loans that are hard to handle. Try to figure out your monthly income and the average expenses you incur for each month. Figure out the remaining amount left from your income after subtracting the monthly expenses.

You can use this remaining amount to finance a car. For example, the remaining amount is $350 and you intend to use this to buy a car. You need to deduct $150 from this that would be allocated for the car