In general, the most important matter to think about when requesting for a car loan is the current auto loan rates. These rates are accountable for ascertaining the total amount that you’re going to pay for the car that you’ve bought or thinking of buying. Thus, if you want to save some money, you have to find a loan provider that offer low car loan rates.
Now, to know more about the current auto loan rates and to find the best place to get low loan rates, here are facts and tips to follow:
But first of all, you must be aware that there are actually 4 major classes of current auto loan rates and these are: 36, 48, 60, and 72-month car loan. They have different rates that can go up or down from time to time. Most commonly, the rates are between 6.5% and 14%, and at times can go up to 15 or 16 percent.
The current auto loan rates can also differ depending on your locality. However, if you would like to have a new or used car loan, the standard rule is by choosing the plan with a lesser number of months, the lower your car loan rates will be.
Additionally, if you’re a member of any credit union, you have a bigger chance to choose a bigger car loans with lower rates. You should contact your union and weigh the car loan rates against the local bank’s rates and review to see which offers the best rates.
On the other hand, you can also get auto loans from the car dealers. Though, their rates are often a little higher but they are safer to a great extent. Safer here means that the entire loan process is so much quicker and the approval is almost guaranteed.
Then again, you should not be worry if you’re either not affiliated with any credit union or always find high rates only because there is one more type of car loan that you can use and it’s known as home equity auto loan. In this loan, you will be using your own home as collateral. The good thing about this is that, whatever happens, you can secure a car loan. Just don’t forget to make inquiries about current auto loan rates and go on looking until you seem to have looked everywhere.
As a whole, it can be easy to get approval for car loans but getting a lower rate proves to be more challenging. But keep in mind that when you are financing any kind of goods or items, the interest rate that go with it will always make a big difference to the total amount, so strive harder to find good rates and save more.
Finally, another important tip for getting a low auto loan rate for your new or second-hand vehicle is to remember that when you’re financing an auto loan, the timing or the right time to apply for the loan is one vital thing to consider. First and foremost, lenders favor applicants who show stability.
Therefore, a stable job is considered as a must. You must wait until you have been employed to your present employer for at least 6 months before you try applying for an auto loan. So, if you happened to be changing employers every 2 or 3 months, the car loan lending company may list you as a risky borrower and they will impose higher auto loan rate in your account.
And take note that when you have a poor credit score, the lender will most likely give you a higher rate. As a result, this will considerably multiply your monthly mortgage payments.