GETTING THE BEST NEW CAR LOAN INTEREST RATES
Are you looking achieve a new car loan from a dealership? The information
featured below will educate you so that you will be able to achieve the lowest
new auto loan rates possible, even if you have bad credit or no credit!
Order a copy of your credit report to ensure accuracy and up-to-date
It is common practice for dealers to send your credit information to
multiple banks and lenders when looking to assist you secure financing for your
new car. Whether or not you achieve approval, as well as the loan amount,
interest rates and terms of your auto loan will be determined by your credit
history. Therefore, it is good practice for you to obtain a copy of your credit
profile prior to applying for a car loan. A quick credit check will help
disclose any negative marks as well as influencing errors and/or misinformation
on your credit report. Any errors listed will need to be disputed immediately.
If information is not up-to-date, you will need to contact your creditors and
make sure that they report your current credit history to all three major
bureaus. If you have any negative marks on your report, you should research what
you can do to improve your credit score.
Dealers mark-up auto loan rates!
Dealers send banks millions of dollars in business every year. As a result,
the banks will provide the dealers with low interest rate loan package, also
offering the dealers a ‘buy rate’ for your loan. This means that the bank will
want a minimum rate for your loan. Any higher amount that is obtained will be
given as compensation to the dealer. For example, suppose the bank is willing to
provide a car loan rate of 8%. The dealer in turn will offer you the same
financing package at 9%. As a result of the mark-up, the dealer is going to make
1% from your loan. Seems like a shady practice. Unfortunately, this is a very
How will I know that I am getting the best rates for my auto loan?
The smartest, most important thing to do before you sign that dotted line is
to do research. Shop around interest rates with some major banks and online
providers. A good idea would be to look for an online auto loan calculator and
crunch some numbers (various loan terms, down payments and interest rates) so
that you can pre-determine what you can anticipate to pay for your financing.
** Also, know what kind of car you want and the specific features you are
interested in. Check out Kelly Blue Book, KBB.org, for new car pricing. Doing
this type of research will allow you to know what to expect in terms of price
for your new car, helping you in your negotiating and ultimately getting you the
Car loan rates are at an all time low. Familiarizing yourself with the
information above will help you achieve the most optimal rates for your