Use Online Resources to Find the Best Available Auto Loan Rates and Save Money Today!

Figuring out how to get the best best auto loan rates can be confusing. It’s important to know your options so that you can get the most favorable terms available for your next auto loan. We want to make your car shopping experience a little easier- Read on for tips on how to get the lowest available auto loan rates in

Request your free online quote and get access to financing options in your area today!

Where To Shop for Auto Loan Rates

The benefits of shopping around for auto loan rates are twofold: you gain extra bargaining power because you have financing lined up before you head to the dealership, and you also avoid the confusing sales tactics used by salespeople who hope you’ll mix up the vehicle’s price with the financing costs. There are several places to consider when it comes to financing your new car.

The easiest of which is to request your free auto loan quote today. This is a no-obligation service that matches car shoppers with competing lenders offering the best available auto loan rates. This way, you’ll get access to offers in your area and have an idea of what’s available and how much you can expect to pay. Keep in mind that if you accept a manufacturers low- or zero-percent financing promotion, you usually have to give up the rebate that may be offered. It’s worth considering taking the rebate instead and getting your financing elsewhere.

You could also shop for auto loan rates at local banks or credit unions. Because they generally only lend to buyers with great credit, they can sometimes offer very competitive auto loan rates. While you can often see current loan rates on their websites, you should go to the bank and apply for the loan in person to avoid confusion or misunderstandings.

Getting The Best Auto Loan Interest Rates

When shopping around for auto loan rates, it’s helpful to keep two things in mind: the current market for interest rates, and your own financial situation. While it’s true that credit has become more difficult to get in today’s economy, it’s often misconceptions rather than a lack of available financing that has kept many from buying a new car. Lenders have responded by offering favorable terms like low auto loan rates.

There are several factors that determine the interest rate that you pay:

• Your lender. Unless you are able to borrow the money you need privately, you’ll be working with a lender. This might be a bank, credit union or dealership. Each has its own set of pros and cons.
• The car you’re buying. Is the car new or used? Interest rates on new cars tend to be lower.
• Loan-term length. In the past, automakers usually only offered low- and zero-percent financing incentives on loans with a term of two or three years. Now it’s not uncommon to see low auto loan rates on loans of up to five years. However, as a general rule, longer loan terms come at higher rates.
• Your credit rating. Borrowers who have good credit get the most favorable rates.

What Type of Car Loan Term is Right for You?

Experts agree that typically, shorter loan terms are better because they allow you to save on interest payments. However, car shoppers are falling to the temptation of low monthly payments and the average loan term has crept to over five years.

As more reliable cars are being built to last longer than ever, buyers are feeling confident in auto loans that extend as far as eight years. Since most people don’t have the cash up front to buy a car, odds are you’ll have to navigate financing at some point. Here are some points to consider:

1. Higher Interest Costs

It makes sense that the longer your loan term, the more you’ll end up paying in interest. Paying your car off more quickly means that you’ll spend less time paying to borrow the money. That’s why experts recommend taking the shortest loan term you can afford.

2. Negative Equity

Because new cars depreciate quickly, most car buyers will start out “upside down,” or owing more than the value of the car. You can ameliorate this situation by putting down a substantial down payment.

3. Car Fatigue

At the end of the day, most buyers will eventually get to a point where they are tired of the car they’re driving. You don’t want to end up stuck paying for a car that you wish you could trade in, so try to pay off the loan while the romance is still there.

4. Low Resale Value

Another reason to avoid long-term auto loans is lower resale value. The longer you’ve spent paying off the car, the less it will be worth when you finally own it outright.

Shopping for auto loan rates can seem daunting, lucky for you there are online resources that can help- Request your free, no-obligation financing quotes today! It’s quick, easy and best of all it’s 100% free and you can request as many quotes as you want until you find the deal you’re looking for.