Demystifying New Car Loan Rates

Demystifying New Car Loan Rates

If you are someone about to begin seeking out a loan for the purchase of a new car you are going to see that there is a wide array of interest rates being offered. Why are new car loan rates all over the map? How is it that one person can get a loan at 3.9% and someone else is hit with a staggering 6% or more?

Generally all loans are shaped by a few individual factors connected directly to the borrowers. For example, the amount of the down payment, the credit history, and the current income will all have an effect upon rates and the terms offered. Additionally, the shorter the term of a loan the lower the interest rate charged.

Those who are fortunate enough to get the lowest new car loan rates tend to be people with good to excellent credit histories and scores. This is not to say that these are only people in higher income brackets because that is not the case, it is simply a matter of a consumer having no history of late payments, maxed out credit cards, or defaults on any bills or debts. A “clean” report coupled with a high score is usually the simplest way to get the best rates.

Additionally, the borrowers that get the best rates tend to also have a bit of cash to offer as a down payment on the loan, and they might also elect to use a much shorter term, such as three years, … READ MORE >>>

Tips on How to Get a New Auto Loan

TIPS ON HOW TO GET A NEW AUTO LOAN

If you are in the market for a new auto loan then the following tips will enable you to get the best deal. Getting financing for a new car highly depends on your credit score and the terms and conditions of the lender. It is important to shop around as well as come up with a budget of the amount you can comfortably afford to be paying off every month. You also want to get the lowest interest rates possible as these affect your monthly repayments. You should be able to get the sleek new car you have been wanting and there are many lenders willing to provide you with an auto loan to make this wish come true.

The first step in the process of getting a new auto loan is to find out your credit score by obtaining a free copy of your credit report. Make sure that the information on your credit report is accurate as this will determine the kind of deal you get. You will find that most lenders will offer the lowest interest rates to those with a good credit rating. If your credit score is low you may opt to improve it first before seeking financing but even with your poor score you will still be able to get financing for a new car but with just slightly higher interest rates.

Obtaining financing for a new auto loan from a bank or credit union can mean additional work and so you may opt … READ MORE >>>