Interest Rate: The Key Factor on Car Loans!

by Mary Wise - Date: 2007-01-18 - Word Count: 535 Share This!

There are such wide variations in APR between lenders that you can end up overpaying on your car loan up to 30% or even more. Thus, before considering a car loan you should become aware of the current average car loan rates in order to avoid being ripped off. You also need to watch closely for any hidden costs and fees that can also turn an otherwise good deal into a very heavy burden. What you need to do is avoid rushing in and do a thorough research on the car

Comparing New Car Loan Rates

In order to analyze new car loan rates, you can use an interest calculator to gather data about different loans like the monthly installments for a loan, its annual interest rate, total number of months to repay the loan, total amount of cash used, total amount given on your trade-in, any extra fees at delivery or for title transfer, sales tax percentage rate charged on loan, net amounts for down payments (cash down and trade-in), total price for vehicle and total amount for auto loans.

The rates of new car loans are affected by the market. So, the more knowledge a purchaser possesses about the interest rates and loan payments, the safer their new car buying will be. The rates of new auto loans are also influenced by the supply and demand for new cars. Thus, in case the new car loan rates are out of the reach of your budget at present, don't panic, as they will decrease soon.

Getting A Good Car Loan Rate

Buying a new car and taking a new car loan at a reasonable rate can be very problematic if you don't know where to search. But after going through this guide, you will know all the places where you can find the most competitive new car loans. You can also read the consumer report magazine for cars when you are looking for new car loans. Their opinions and views are completely impartial because they are not sponsored or financed by any specific car dealership.

You can also search online. The Internet is often completely ignored by most car shoppers. Also, don't get seduced by the advertising strategies employed by the dealers, such as "no down payment" or "100% financing". Remember that the dealer has already included these hidden costs into the overall price of the car. For example, you should not pay for credit life insurance; extended warranties and other hidden costs that the dealer usually includes in the price of the car or in the APR (annual percentage rate). You will be able to save up to 40% or even more by receiving an extended warranty through an online reputed administrator.

There are many advantages you can obtain by taking a new car loan online. Online lenders provide flexibility, high quality service and competitive interest rates. The first place to begin the reduction of your cash requirements is the lender. Obtain a zero point interest rate. It means that you have to pay a slightly higher interest rate to the lender, but no discount points or origination fee. In the present low interest rate market, a zero point loan is still a substantially low rate.

Related Tags: car loans, comparing loan quotes

Mary Wise, a professional consultant with twenty years in the financial field, helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and preventing consumers from falling into the hands of fraudulent lenders. At you will find more useful tips and interesting articles on this subject and other financial related topics.

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