Request A Quote For Free Car Loan Interest Rates and Get a Great Deal on a New Car Today!

Auto financing can be complicated, and one of the most important factors are car loan interest rates, the lower the rate the better the deal. Since buying a car is, for many people, the second most important financial decision they will make, next to buying a house, it’s worth the effort to do your research and find the lowest available car loan interest rates near you.

Auto financing companies are ready to compete for your business. Unveil the available car loan interest rates by requesting your free auto loan quotes today!

Buying in Cash vs. Leasing vs. Financing

When you’ve chosen a new car, there are three common ways of paying for it. It’s important that you understand the pros and cons for each of them:

Buying in Cash

If you have the resources to pay cash for your car, you can eliminate interest charges and finance fees that usually add thousands to the price of the car. You also own the car outright from the start. This makes it easier for you to sell the car whenever you please. Finally, paying in cash frees you from monthly payments.

That being said, there are some drawbacks to paying in cash. For example, if you drain your savings to pay for a car and you incur an unexpected expense, you may find yourself in a tight spot. You also are investing your cash in something that will lose value over the years; a car is rarely a solid investment.

Leasing

If you’re looking to get a new car every few years, leasing could be the right choice for you. There are several advantages to leasing. Your car will likely remain under warranty for the entire lease term, so you don’t have to worry about paying for costly repairs. Leasing also offers lower monthly payments versus buying. You can also deduct payments from your taxes if you use the car for work more than 50% of the time. You also may be able to lease without making any down payment, compared to the 10-15% usually required to buy.

However, leasing has its downsides. Once you return the car, you have nothing to show for the money you’ve paid. Even if you want to buy it at the end of the term, it’s likely that it will cost more than you’d pay for the same car elsewhere. This is because firms overestimate the residual value to their benefit. You also need to stay under annual mileage limits or face hefty fees. Finally, you probably will need more comprehensive insurance if you lease, and you can’t make any modifications to the car.

Financing

The most popular option in America is financing. You make monthly payments for a predetermined number of months, factoring in car loan interest rates, until the full cost of the vehicle is paid. You can find financing offers at banks, credit unions, dealerships, and independent lenders. Request free quotes from multiple lenders, compare them and save on your new car today!

Compared to buying in cash, financing allows you to purchase a car without having to lay out all of the money up front. Unlike leasing, you own the car at the end of the loan term. You might even be able to find available 0 percent car loan interest rates that make financing just as cheap as paying in cash. The types of financing available to you depend on your credit score, as well as the current market and the car you’re purchasing.

Because you don’t own the car until you’ve paid off the loan, it can be a hassle to sell the car when you still owe money on it. This is especially true if you’re “upside down,” meaning you owe more than the car is worth. Car buying will also usually require a down payment of 10-15%. It also tends to cost more than leasing on a monthly basis. Car lenders are offering longer loan terms to offset the cost, but these are more expensive in the end. Experts recommend taking the shortest loan term you can afford.

Because auto financing is such a big decision, we recommend shopping for loan quotes before you shop for cars. Get your free quotes today and find the best available car loan interest rates near you!