Free Vehicle Finance

Tips On How To Get The Best Car Loan
By Gray Rollins

Buying a new car can be a lot of fun, but getting the financing
can be stressful. The objective is to get the lowest interest
rate and optimum term. Here’s how to get the best car loan
stress free.

There are several factors that influence the rate you’ll pay
and how you can get the best rate. Prime rate sets the stage
for what interest rates will be. Lenders offer a variety of
interest rates and packages based on the prime rate.

Market condition will also affect rates. If sales are down,
you’ll often see 0% or rates that are below prime offered by
the big contenders. Zero percent is also used to help move cars
that aren’t as popular. When interest is reduced to very low
rates, the term of the loan is usually reduced too. It’s very
common to see 0% offered on 2 or 3 year loans and then, as the
term increases, so does the rate. Watch for these
opportunities.

The type of car you are buying will also affect the rate. New
car rates are usually lower than used car rates. As well,
dealers often offer incentive packages on new cars where the
down payment is waived or the term extended. They may also
offer a better interest rate and sometimes the price of the
vehicle is even slashed. And of course the lower the cost of
the vehicle, the lower your payments will be.

Unless you’ve got cash in your pocket, you’ll be borrowing from
a lending institute. Automakers offer their own financing for
convenience, and it is very competitive and convenient. However
you should check with the bank you deal with regularly as you
may find they offer you a better interest rate than the
automaker plans.

Most times the rates offered by dealership financing are very
competitive. The trick is to know and understand what’s being
offered and then negotiate the best deal possible. Don’t just
assume they’ll hand you the best rate.

The length of the term will affect the rate you pay. The longer
the term the smaller your payments are going to be, but the
higher the interest rate. To get the optimum rate determine the
size of payment you can afford and then calculate the term that
payment size fits into. Don’t go any longer than that.

Your personal credit rating also affects the interest rate
you’ll pay. The better your credit rating, the lower the
interest rate will be. The Consumer Federation Of America says
that only 15% of all car buyers actually qualify for 0%
financing. So don’t feel bad if don’t make the grade.

If you know your credit rating and the interest rate you
qualify for before you start shopping, then you can decide the
term that works for you and the vehicle price tag you can
afford in advance. Now all that’s left to do is shop for
vehicles in the right price range. When the right one comes
along you’ll know it. And now that you know how to get the best
car loan you can be driving that new car off the lot in no time!

About the Author: Gray Rollins is a featured writer for
YourAutoLoans. To learn more about getting a car loan, visit us
at http://www.yourautoloans.com/ and
http://www.yourautoloans.com/bestcarloan/

Source: http://www.isnare.com