You will want to find the best interest rate for your car loan, so it’s crucial to understand and be aware of two things; the way the markets are at the moment and your own financial limitations.
There are a number of things that will indicate your interest rate.
- the lender
- the car that you decide to buy, whether new or used. Note that new car interest rates will often be lower
- the length of your loans terms and remember that a long term loan comes with higher interest overall
- your personal credit rating. If it is good it allows for better interest rates.
It is important to do some homework before purchasing a car. Really take notice of how long your loan will take to pay off because the sooner the better. Remember cars lose their value very rapidly. Some dealerships are offering a better deal actually than a bank, but check all the small print before signing.
Repair Your Credit
If you find yourself being rejected for a loan, first get your credit report and make sure it is correct. Mistakes do happen and if you find one, contact the bureau immediately.
If there is still bad credit you can go online to one of the better known lenders that will give loans with bad credit. Some don`t even bother looking to see what your credit is. Again though, be aware of what you are signing and watch for the interest rates being offered you and if they are subject to change. The internet is a great convenient place but there will always be those companies hoping to pull the wool over your eyes.
Knowledge is Power
So bring along your wallet of knowledge when looking for good interest rates and you won’t find your wallet empty!