How To Get The Best Auto Loan Rates
Rodney Garrett
The most obvious way to get the best auto loan rates, is by having an excellent credit rating. It's easy to get great auto loan rates with low interest rates if you have a FICA over 700. But, there are a few other ways to get good auto loan rates.
Know Your Credit Rating Before You Apply For An Auto Loan Rate
You can do a Google search on credit scores to find all the information you need to check your credit rating. Make this your first step before applying for an auto loan to get the best auto loan rate possible. With this knowledge, you will get the best auto loan rates for your particular situation.
Lower Your Auto Loan With A Large Down Payment
Making a large down payment will help if you have bad credit. You should try to make a down payment of at least a third when you have bad credit. Auto loan rates can get as high as 28%, so be careful when shopping for auto loan rates if you have bad credit. It may be best to save for a larger down payment, instead of risking a repo, because of high monthly auto loan payments.
With auto loan rates over 20%, you can end up paying twice the cost of the vehicles value over the term of an auto loan. The more money you put down, the more money you'll save on auto loan rates.
Refinancing Your Auto Loan Rates
You can refinance your auto loan rate after 12 to 18 months. The idea is to build your credit by making your monthly auto loan payments on time. This will give you time to increase your credit score. Usually you can get the best auto loan rates with a FICA score of 660 or above. If you have a low FICA credit score, find out the cause. It may be something that can be fixed easily, such as a late payment due to a medical condition in the past.
4 Tips On Getting The Best Auto Loan Rates
1. If you have a great credit rating, you can take advantage of dealer incentives. It's hard to beat 0% factory incentive auto loan rates.
2. Make sure you have as much information as possible before walking into a car dealership. Your local Credit Union or Bank, may be the best way to get the lowest auto loan rates in your area.
3. Some people think it's a myth, but buying your new vehicle on the last day of the month can save you hundreds of dollars on auto loan rates. Sales managers give big bonuses for the salesman who sells the most cars by months end. Getting the lowest price on a new vehicle also helps with financing, because there is less risk to the lenders.
4. Use logic, not emotion when considering auto loan rates. Some people will rush the process just so they can drive their new car. It's best to take your time with auto loan rates, because the new car smell doesn't last as long as your auto loan rates do.
With the Internet resources available today, the consumer has a big advantage when looking for the best auto loan rates online. Take time to educate yourself on the process of getting an auto loan and you can save thousands of dollars on the auto loan rates available.
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