Best Interest Rate Car Loans
Want to compare car loans?
Here are a few facts and stats for you about car loans:
- Fact: Approximately 50% of new car buyers look to their banks or building societies when seeking car loans.
- Fact: About 25% of new car buyers accept whatever auto loans the car dealer offers them.
- Fact: More women than men shop for low interest rates on car loans before they shop for a car.
- Fact: You can save as much as £1000 by shopping for car loans as carefully as you shop for a car.
If you check around the internet, you'll find lots of advice on how to choose a great car, how to get your car for a low price and where to get the best deal on your new car - shop around, search on the web, get several different prices, read all the fine print. There's far less written about how to get low interest rates on car loans, but the fact is that the best way to pay less for your new car is to get the lowest interest rates possible on the loan you take out to pay for it. Here are five tips to help you get the best interest rate you can when you're shopping for car loans.
- Know what you qualify for - you credit rating is important.
Before you apply for anything, check your credit rating. The better your credit score, the lower the rate of interest you can expect to pay on a car loan. Knowing where you fall on the credit score ladder can help you find the best car loans for your situation. If you have perfect credit, your bank or building society or the dealer just may be able to offer you low interest rates - even the best that you'll find - but even the slightest dent in your shiny credit can push the interest rates you'll be offered up by several percentage points. If your credit is middle of the road or lower, you'll do far better with a finance company that specializes in making auto loans to people with less than perfect credit.
- If you DO have good credit, check with the dealer for special incentives.
Many dealers can offer interest rates as low as 0% IF your credit is excellent AND you can pay off the loan in 12 months. Those are two big Ifs, but if it fits you, you won't find a better deal on auto loans anywhere else.
- Check with your bank or building society if your credit is generally good, or if you can't meet the high payments that a 12 month term would mean.
If you're an established customer with a good relationship, you may get fairly low interest rates from your regular banker. They do like to keep you as a customer and often offer special rates if you have several types of accounts with one bank. However, it may not be your best option. Even if you do have good credit, you should still?
- Shop for car loans online.
At moneyeverything.com, you'll find some of the best low interest rates on car loans anywhere. Check around, compare interest rates, and ask for quotes on auto loans from several different providers. Don't simply accept the first loan that you're offered - every finance company has their own criteria for setting interest rates, and they can vary by several percentage points. Shop around to be sure you're getting the lowest rate available to you.
- Find a cosigner.
If you can't get a loan at all - a rare occurrence with all the companies that cater to those with bad credit - or the rates being offered you are too high, consider asking a family member or friend to cosign a loan for you. With their guarantee of repayment, you'll often be offered the interest rate for which they'd qualify, which will save you money.