Posts tagged ‘car loan rates’

Research Your Auto Loan Financing Options

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A car loan gets you the money you need to buy the car you want or the transportation you need. With the Internet, researching different makes and models is easy. And more people are doing their research before settling on a particular car. Unfortunately, they don’t take the same time with finding the right financing. By carefully researching your auto loan financing options before heading out the door, you can save yourself a lot of headaches and possibly a lot of money, too!

Before you Start

Before you start your search for the best financing rate, know your credit score. Anyone can easily check their score and ask for a copy of the report. Once you know your score you are better equipped to negotiate a good rate. But, first make sure the report is accurate. If you see any errors or omissions, have the agency fix it immediately.

Securing a Loan

Securing a loan through your bank or credit union involves more work. That is why many people prefer to let the dealer handle the financing. The dealer, in most cases, uses a regular bank. The only difference is they work on your behalf instead of you going in and doing the negotiations yourself. Also, the dealer does not do this for free. You might not even think about the additional fees and charges, but look closely, you could save yourself a lot of money. Not only are there fees and charges, the dealer may actually hide the true price of vehicle somewhere in the fine print.

Get Pre-Approved

Experts will tell you the best car loan rates are offered by banks and credit unions, not dealers. Plus, when you obtains your auto financing on your own, you can walk into the dealership as a cash buyer. This eliminates the financing end of negotiations altogether. With online services, you can quickly compare rates of several lenders at the same time. In many cases you will get an online response to your application within an hour. If you are approved you will essentially receive a blank check, but you don’t have to use the full amount! Only take what you need.

Simple steps in calculating the car loan cost

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It is important for you to calculate the car loan cost before you signing the loan contract. This is because knowing the cost of the loan would allow you to determine whether the payments involved would fit your budget or not. In order to do this, you should know the loan

How to obtain new car loan rates with bad credit

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In terms of car loan rates, bad credit is the greatest issue that makes loan application difficult. Many lenders as well as banks are most of the time hesitant in lending money to loan applicants with poor credit history since they view these clients as high risks and customers that are not so reliable. In addition to this, individuals with bad credit history and are now capable of improving their financial situation are also experiencing a hard time in getting a new car loan. This article provides a compilation of advice and tips on how to obtain new car loan rates and car loans for individuals with history of negative credit

Common requirements in applying for a new car loan

In order to apply for a new car loan despite the negative credit reputation you need to meet some of the basic requirements that most lenders ask for. These requirements are important in assessing the customer

Useful steps in researching for used vs. new car loan rates

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Conducting an extensive research on car loan rates allows you to obtain the proper financing for the car you wish to purchase. However, it is useful for you to decide on what particular type of car that you would be purchasing. You can consider the price as well as the loan rates involved in financing the two these two types of vehicle. Comparing these factors would help you decide which of the two fits on your budget. To further help you in making your decision, this article enumerates the useful tips in researching for the used and new car loan rates.

Examine your budget

The first thing that you should do before deciding on what type of vehicle that you would be purchasing is to examine your budget. Try to examine your monthly take home pay as well as the expenses for each month. Deduct the expenses from the monthly income and take note of the remaining amount. You can use this in determining which type of car would suit your budget. You also need to consider the savings you have for the down payment of the vehicle that you have decided to purchase.

Research for the prices of a used and brand new car

As soon as you are able to determine the remaining amount of your income for each after deducting the monthly expenses, you can go on researching for the prices of used and brand new cars offered for sale. You can check the websites of several car manufacturers for the prices of brand new cars. You can also check the websites of the dealerships that are selling used cars. Take note of the prices of each car that you are interested in. Make a short list of the prices for each.

Check the loan rates for each type

After obtaining an idea about the prices of used and brand new cars, you can search for the loan rates offered by several lenders. To simplify the search, you can use autofinancing.net in checking the rates loan rates for each type of car. Autofinancing.net is connected to a lot of lenders that are willing to provide the loans you need.

You can obtain the car loan rates for the used and brand new car you are interested in purchasing by using autofinancing.net. Take note of the rates and try to compare the payments involved in case you decide to finance a brand new or a used car. Check your budget and select the type of car that you can afford based on the budget.

Tips in conducting interest rate car loan comparison

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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.

Tips to compare used and new car loan rates

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Comparing the car loan rates involved in financing a brand new and a used car is an effective method that helps you decide which of the two types of car would fit your budget. Upon doing the comparison, it is important to look at the following:

Pros and cons of financing used cars

Financing a used car allows you to pay the loan off in a shorter period compared to a brand new one since most lenders usually offer short term loans for this type of vehicle. However, the interest rates involved in financing a used car is higher compared to financing a new one. This is because lenders are in greater risks in providing loans to finance a car since there is a greater possibility for the creditor to default on loan payments or run away from their financial obligations. High interest rates placed on used car loans therefore provide security to lenders.

Pros and cons of financing a brand new car

Financing a brand new car usually has lower interest rate compared to financing a used vehicle. However, you might be paying for the car in a longer period especially when the loan has a longer term. In addition to this, a long term loan might cause you to pay more than what is necessary because of the payments on the interest rate.

Besides these, there are other important points that you could use in doing the comparison. Some of these points are written below.

  • Choose a car that you want to buy. Compare the prices of this vehicle when it is sold as brand new, used or pre-owned car. Take note of the primary amounts involved for this serves as the basis of the interest rate that you would be paying in case you would purchase one of these.
  • Contact the dealerships, lenders, and institutions and inquire about the interest rate that they offer for a brand new and used car loan.
  • Use an online car loan aggregator to help you compare the rates involved in financing a used and brand new car.

Useful advice in calculating the car loan interest rate

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The car loan interest that you pay depends on several factors. In case you wish to purchase a car and you are in search for the best interest rate, you might be interested in knowing how your credit score affects the loan terms that are appropriate for you. Obtaining car loans with lower rates are easier when you know the factors that directly influence the interest rates the lender would offer for you. Through this, you are able to alter the factors that you can control and therefore reduce your car loan rates. In case you are eager to learn more as to how the interest rate of a car loan is calculated, this article would explain some of the factors involved.

The lender

The loan provider or the lender has something to do with the car loan interest rates tied to the loans offered to you. Each lender has their own way of calculating the interest rate placed on the loans they offer. In order to find the best rates, you need to request for loan quotes from different lenders so that you can compare these.

The amount of down payment provided

The down payment you provide when you obtain a loan to finance your car has a direct effect on the interest rate and the payments you would be paying. The down is deducted from the principal amount you borrowed from a lender and the interest rate is usually calculated based on the remaining amount that you need to pay all throughout the loan term. This simply means that a higher down payment could result to lower interest rate.

The credit score you own

Most lenders use your credit score in calculating the interest of the loan offered to you. When your credit score is high, lenders are willing to charge you with lower interest. If your credit score on the other hand is low, you might probably be charged with higher interest since lenders would view you as a financial risk with a greater tendency of running away from your financial obligation.

The car loan term

Long term loans are usually charged with higher interest since you are given a longer period to pay the loaned amount off. Short term loans on the other hand are charged with lower interest since the loan is paid-off in a shorter period and the monthly payments are higher compared to long term loan

How to conduct a comparison of fixed rate loans for cars

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Comparing fixed rate loans for cars are most of the time confusing and very complicated. This makes the selection of the best rate offered by lenders for this type of loan more difficult. However, this task can be accomplished by doing the appropriate procedures. A good example of this is by using loan aggregators such as LendingTree.com and Bankrate.com. These websites helps loan applicants compare the rates involved in different loans offered by most lenders. In case you are not yet familiar on how to use a loan aggregator, this article provides you with the useful steps on how to do use these.

First Step

Car buyers guide in getting the lowest car loan rates

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Buying a vehicle is an exciting experience but getting the lowest car loan rates to finance the vehicle would further make the experience more exciting. However, finding the right car is most of the time difficult since there are many car models offered on the market. The good thing is that getting the best car loan rate is easy to obtain. This article provides some tips that you can consider before going to the dealership.

Check your credit report

The best way for you to increase the chances of getting the best loan rates is checking your credit report. You need to examine the entries included in it to see if each of these is correct. This is important since most lenders base their calculations of the interest rates of your loans with the credit report. Do not hesitate to correct the wrong entries included on the report. You can also provide justifications of these incorrect entries when you go to the lender to apply for a loan.

In case the report shows that your credit score is low, make sure to improve this by looking upon your unpaid premiums. Paying your old dues improves your credit score therefore making you a lesser risk customer. This will not only affect the interest rate you get form auto loans but also the other loans that you wish to obtain.

Search for more financing deals

Searching for more financing deals helps you choose the offer that has the best rates included in it. You can do these by looking upon the available loan deals offered online. Using the internet also allows you to determine the offers solely offered for online applicants. These loan offers most of the time involve lower rates compared to those offered by banks and other credit institutions.

You can also check the loan rates offered by banks, credit unions, and dealerships. Compare their rates with those that you obtained from the internet.

Knowing where your loan rates fall based on average car loan rates

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Average car loan rates differ from one state to another. In case you are planning to buy a new or used car and in search for financing, you need to determine the amount that other borrowers are paying for their interest rates. By knowing this, you can make a comparison of what they pay and the amount that you would be paying in case you obtain a loan. Through this, you are able to determine whether your loan rates fall on the average or not. To further help you determine where your loan rates fall this article provides some useful information about the average car loan rates.

Average car loan rates per state

The national average car loan rates at present are estimated to be around 7%. However, this rate varies from one state to another. For example, you would get a new car loan amounting to $20,000 the interest rate tied to it in different states are the following:

  • Illinois- 6.07%
  • Philadelphia- 7.71%
  • Los Angeles- 7.54%
  • Cleveland- 6.19%

Although these are the average rate for car loans on the above mentioned states, you also need to bear in mind that the loan rates appropriate for you are still based on your personal details as well as your financial stability.

Knowing where you fall

In case you are getting an interest rate not similar to the national average car loan rates of 7%, you are either a good or a bad credit holder. Once the interest rates tied to the loans that are offered to you are lower than 7% this simply means that you have a good credit record. If the rates offered to you are higher than 7% it simply means that your credit record is not that impressive.

Borrowers with FICO scores of about 700 or higher are qualified to obtain loans with interest rates of 3% to 4% or even qualify for 0% interest loans offered by some lenders out there. Individuals with bad credit record on the other hand are probably paying more than the average rate of 7%.

How to obtain new car loan rates with bad credit

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In terms of car loan rates, bad credit is the greatest issue that makes loan application difficult. Many lenders as well as banks are most of the time hesitant in lending money to loan applicants with poor credit history since they view these clients as high risks and customers that are not so reliable. In addition to this, individuals with bad credit history and are now capable of improving their financial situation are also experiencing a hard time in getting a new car loan. This article provides a compilation of advice and tips on how to obtain new car loan rates and car loans for individuals with history of negative credit

Common requirements in applying for a new car loan

In order to apply for a new car loan despite the negative credit reputation you need to meet some of the basic requirements that most lenders ask for. These requirements are important in assessing the customer

How to obtain low car loan rates

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Obtaining a low car loan rate from lenders is easier if you are qualified and by following some of the simple guidelines included in this article.

Tips to obtain low car loan rates

  • Before searching for low car loan rates make sure to obtain the latest copy of your credit report from one of the three leading credit reporting agencies. The credit reporting agencies are Experian, Equifax and Trans Union. These agencies would provide you with free credit report once each year. You can obtain this report from AnnualCreditReport.com. Bear in mind that in order to qualify for lower car loan rates your credit score should be 680 or even higher.
  • Bear in mind you that you would obtain a lower car loan rate if you choose a loan with shorter loan term. For example, your interest rate would be lower in case you choose to finance your vehicle within 36 months instead of financing it within 48 months.
  • You might also reduce your loan rate if you would allow the financing company to withdraw the amount of your car payment automatically each month. Although this might not be a huge discount, it allows you to save hundreds of dollars in the long run.
  • Try to qualify for a loan from a prime lender instead of getting it from a sub-prime lender. Prime lenders usually offer lower car loan rates compared to sub-prime lenders. Start your search by checking reputable websites such as CapitalOneAutoFinance.com, Bankrate.com and LendingTree.com.
  • In case you want to obtain financing from a dealer do not hesitate to negotiate. Make sure to about the existing car dealership incentives, discounts and rebates. Since most dealers are motivated by the idea of being able to sell the car, you might end up paying lesser amounts in the long run by negotiating.
  • Try to provide a down payment of at least 20 percent of the vehicle

Useful tips to obtain an excellent auto car loan rate

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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

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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

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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

Useful tips in checking the current car loan rates

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Knowing the current car loan rates available in your present location is important. It allows you to have a clear idea on the amount that you would paying in case you obtain a loan to finance your new or used car purchase. This is also important since interest rates placed on loans vary from one place to another. Besides this, your credit score as well as the loan terms have greater effects on the amount
You pay each month.

Knowing the current loan rates for cars might be confusing and a bit hard if you have no idea where to look for it. However, this old problem is resolved by using the internet. This article provides you with specific sites where you could check the latest car loan rates and these are written below.

1. Interest.com

One of the most dependable sources of information about the current car loan rate is interest.com. It has been providing the most accurate interest rate for car loans since 1994. The site also provides updated interest rate since it monitors the day to day activities that are happening on the car sales industry.

In addition to this, interest.com allows you to make a localized search of the rates in your exact area. All you need to do is provide your current state and city. However, to make your search more convenient, you can use the zip code in doing the localized search.

2. Bankrate.com

Another source of information when it comes to current car loan rates is Bankrate.com. This site first emerged as

How to make a comparison of different car loan rates

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Making a comparison of different car loan rates allows you to find the best loan deal. Knowing whether a loan offer is affordable or not helps you save money.

How to calculate new car loan rates

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Calculating new car loan rates is most of the time difficult because there are many factors involved in it. Knowing the exact amount needed for the repayment of the vehicle is also difficult. You still need to understand how the Annual Percentage Rate (APR) and the Annual Percentage Yield (APY) affects the loan rates for a new vehicle despite the abundance of online car loan calculators. This article explains the APR and APY to help you get a better idea on how the new car loan rates are calculated.

Annual Percentage Rate (APR)

The Annual Percentage Rate is a popular concept used by lenders when you inquire about the interest rates of the loans they offer. This may sound common but only few car buyers know what this concept really means.

How to obtain the lowest auto loan rates

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Obtaining low auto loan rate is one of the greatest goals that most car buyers want to achieve. This is because lower loan rates allow them to save money from buying a brand new or used car. The savings that they would obtain might be used for other expenses. However, getting the best rates from a car loan needs extensive research and careful planning. In order to help you obtain better loan rates, this article listed some of the useful ways below.

1. Shop for the best loan offer

One of the best ways to obtain the best rates for a car loan is shopping around for lenders that offer affordable deals. You can start looking around by requesting for loan quotes from banks, credit unions, and other credit institutions. You can also check the rates offered by online lenders. Compare all of the loan payments they offer as well as the interest rate and choose the most manageable and easy to pay off.

2. Join a credit union

Credit unions usually offer lower loan rates especially when you become a member of union. Look upon the membership requirements and try assessing whether becoming a member would provide you with what you need from a car loan. Besides this, credit unions usually offer loyalty benefits for their members.

3. Avoid being an impulse buyer

You should avoid being an impulse buyer in order to obtain lower car loan rates. Bear in mind that it is very easy for you to step on the dealership

Factors affecting car loan rates

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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

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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 Autofinancing.net 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