The average auto lease rate is one of the most important things that should be considered before leasing a vehicle. Just like car loans, lease rates vary according to one
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How to obtain low car loan rates
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
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 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
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.