Low Auto Loan Rates
Hello everyone!
We help you get low auto loan rates. If you’re planning to get a loan for a new (or pre-owned) car, of course you’re going to want the lowest auto loan rate you can get. But if you already have a car loan, did you know you may be able to reduce your monthly car payments by refinancing to a lower rate? I didn’t know that until recently. Most people think refinance loans only apply to homes. Not true. You can refinance an auto loan too. Refinance customers reduce their interest rate an average of 3.5%, saving an average of $60 or more off their current monthly car payment.
Although about half of vehicle buyers arrange their financing through the dealer, you have to be very careful with this approach. Research shows that dealers have been known to bump the interest rate you pay above what your credit score says you should pay. For example, if you qualify for a 6.5% interest rate but the dealer charges 8% on a 60-month, $20,000 car loan, you pay $900 more in interest. That’s extra profit for the dealer.
Getting your auto loan squared away online, before you go to the dealer, is a smart way to negotiate the price. Online financial corporations make it easy for consumers to apply for loans right from the computer without ever having to leave home to talk to a lender. You can acquire a good bargaining position on the price of the vehicle by learning exactly what rate you qualify for and having your loan approved in advance.
The interest rate you pay depends on the credit “tier” you fall into. Tier A and B borrowers get the lowest rates of 0% - 7%. The better your credit score, the lower the interest rate. So make sure you know your credit score to find out what rate you should be offered for your car loan. The average car loan is 60 months (five years), but you can opt for longer loan terms up to 84 months (seven years). Longer terms and locking in the lowest possible interest rate will make a big difference in how much you’re monthly payment will be. Armed with this information, you’ll be able to negotiate more effectively.
- Ken S.
