Securing The Best Auto Loan Rate

2007-03-08 10:33:40

( Automobiles )



If you are thinking of purchasing a new or second hand vehicle through financing, you should look for the best auto loan rate first. Auto loan rates can vary from one lending institution to another. It can also differ from one car dealer to another. But the biggest factor that can affect the auto loan rate that you can get is your credit report.

Before you apply for financing, you should order a copy of your credit report. You can end up paying more because of some mistakes in your report. Check for inaccuracies and outdated information. If you have already paid off a loan and it still does not show up on your credit report, provide proof of payment and ask them to correct it. Check your employment history. Going up a few points in your credit rating can make a lot of difference in the auto loan rate that you will get.

It is a good idea to do your research on low interest auto loans. You can browse the internet and even go visit a bank personally to get an idea of the current market rates. You can even have your financing application approved before you go into any car dealership. This would give you an idea of how much the lending institution is willing to loan you. It will also give you an accurate picture of your monthly amortization so you would know whether you can afford it.

You should also consider the resale value of the car if you want to sell it after a couple of years. The internet can also help you a lot on this. Choose a car that has a reasonable resale value after three or five years. Getting a car is not just about the monthly payments. You should also consider the insurance costs, maintenance and gasoline expenses. Purchasing a car is just a first step.


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