Posts tagged ‘interest rates’

Useful steps in conducting research on variable rate loans for cars

Comparing the amounts involved in most variable rate loans for cars allows you to determine which of the existing offers are worth taking. Since this type of loan is subjected to frequent changes, you need to do the comparison carefully in order to avoid getting stuck in a less favorable loan. This article serves as a guide that could help you do the comparison.

Step 1: Examine the interest rates

The first thing you should do in comparing the variable loan quotes that are available is to examine the interest rate attached to each offer. Take note of the starting rate for this important in determining the preliminary interest rate that you would be paying in case you obtain a variable rate loan.

Take note of the factors that affect the changes in the rates of the loan. Check the loan terms and try to determine the period where the loan rates would be calculated. Most of the time, the rates are calculated every six months or depending on what is written on the loan term.

You also need to know the loan

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

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%.

Common requirements for 0% auto loans

As interest rates of most car loans are in constant rise, dealerships began promoting 0% auto loans to attract customers to buy their cars. This type of loan has literally zero interest rates attached to it. These loans are attractive since car buyers have the chance to buy their cars through loans with payment terms similar to buying vehicles on cash basis. However, this type of loan has stricter requirements such as the following:

Higher credit score

While most average loans requires a credit score of 650 or higher, a 0% auto loan applicant needs to have a credit score higher than this. Most lenders require a loan applicant to possess a credit score of at least 680 to qualify for 0% auto loans. For luxury car buyers, the credit score requirement for 0% auto loans is at least 700 or 720 making this type of loan out of average car buyers reach.

Larger down payment

Since these loans don

Useful steps in comparing fixed rate loans for cars

You might get the best rate from different fixed rate loans by comparing the deals offered by lenders. Doing the comparison however is most of the time complicated and not very easy. In order to do this correctly, you need to use the appropriate calculation and obtain the needed information such as the interest rates, the loan terms, and the down payments involved in each offer. However, you can make the comparison easier by using a loan aggregator. You can use popular loan aggregators such as or to help you out.

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 checking the current car loan rates

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.


One of the most dependable sources of information about the current car loan rate is 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, 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.


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

How to make a comparison of different car loan rates

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

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.

Top Interest Rate Factors You Should Watch Out For

The interest rate factors affect the amount paid for the interest of a car loan. This determines the appropriate interest rate placed on the loan you secure. It is important to take note of concepts affecting the interest rate, since it could help you save money when you buy a car or complicate your credit condition in the event that you failed to pay for the loan