Posts tagged ‘incentives’

New car loan interest rates: How to obtain lower payments

Obtaining the best car loan interest rates may not be that easy and usually takes some time. What is important is that you are able to complete a good research before going to the nearest dealership to buy the car so that have would be a great chance of getting a good rate. Bear in mind that the rates involved in a car loan vary according to its structure and the credit history you own.

Although you might find the best rates offered by internet based lenders by using autofinacing.net, lending institutions such as banks and credit unions are also capable of providing you with the best loan rates that are available in your area. This article provides you with a guide on how to obtain the best rates from these credit institutions.

Know your credit score

One of the most important things that you need to do before visiting the car dealership is to know your credit score. Review your credit report and your credit score by using MyFICO. Examine all of the information included on the credit report and make sure that all of these are correct. In case some of the information written on the report is not correct, you need to file a complaint from each of the three bureaus.

Search for existing special financing rates

You also need to check the special financing rates offered by manufacturers to their buyers. You can either check the special offers and incentives by checking the manufacturer

How to obtain low car loan rates

Written by writer
Categories: Auto Loan Rates
Tags: car dealership, car loan rate, car loan rates, car payment, credit score, incentives, interest rate, loan term, low car loan rates, rebates

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