High interest rates do make banks and car dealers a lot of money. This money is made off of you, the consumer. You can arrange an auto loan or an auto refinance loan to have lower rates if you use your home as collateral. This kind of loan would be one against your property through the mortgage lender you have for it. It might be a HELOC, (home equity line of credit) or just a HEL (home equity loan) so that you can then use that money to buy a new or used car. While this is great way to obtain lower rates, you should keep in mind that you are risking your home; make sure that you keep up the payments.
One great way to avoid the hassle you go through at a dealership in obtaining car loan financing is to get it before you get there. Choose an auto loan lender that you feel comfortable with and can provide you the lowest interest rates. Some companies like myAutoloan.com provide all the shopping you need by getting multiple offers for your car loan. It’s free and they have been providing this type of auto loan and auto refinancing for 8 years, with an A+ BBB rating. By doing this ahead of time, you are going to avoid the highest rates that come through the financing at a dealer because you can actually choose what works best for you. Remember that a dealer will make a little off every vehicle that is financed through that dealership.
You could choose zero percent financing, but it will end up costing you in the long run. The catch is the statement, “for well qualified customers”, which means if you have perfect credit. Choosing lower rates is best for a car loan if you qualify – however, most don’t. Use an auto loan calculator to check the amount that would be best for you in managing your monthly auto loan payments. You can find these calculators on line and ready for you to put to use.
Before you start out to go shopping for a new car, you should take the time to have a look at what your credit score is. If there are any discrepancies on it that will cause you to have to pay higher interest rates on a car loan, you might want to consider getting them straightened out first. The worse your credit score, the higher interest you will be charged.
One way to help in getting best deal when you are buying a car is to save a down payment. Make sure that you take an amount that will dent the asking price. If you can wait and make your old car do until you have enough of a down payment to make a difference, then you will be making a smart choice. This will get you low interest loan and easier financing as well.
Making sure you learn all the ways to get low interest auto loans is going to save you a lot of money and aggravation. Choose the best auto loan and you will glad you did when those payments become due.
Other Loan Products: