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Best Car Loan Rate
Low Rate Car Loan
Great Job! After doing all your homework and research you've picked out your new car, negotiated
the best car deal you could and have received the best price for your trade. Now what do you do next?
Remember there are three transactions here. You're buying a car, selling your trade (if you have one or have not
sold it yourself) to the dealer, and buying money, the money you need to pay for your new dream car. Next
you want to get the best car loan rate.
If you want to get the best car loan rate you can. Know your credit worthiness. Most of us already know
if we will qualify for credit. But on what terms? What we don't know is, what is the best auto loan rate we qualify for.
If you don't know how your credit rating is, you need to find out. You can do this by requesting a copy of
your credit report online from one of the three major credit reporting bureaus. Your credit rating will be
a major factor in determining what terms you qualify for and the car loan rate you will get. If you need help
understanding your credit report visit MyFico online for more information.
Go over your budget and decide what you can afford for an auto loan payment. Be sure to consider everything. Don't
forget about the taxes and the interest you will pay. Will your new car cause your insurance to go up or
down, what about fuel economy (is it better or worse), maintanence and upkeep. These will all be
part of your monthly operating costs. Most experts agree, you should shoot for a payment of around 20
percent of your monthly take home pay. After you determine how much you can spend each month use
our auto loan payment calculator to find out how
much you can borrow and stay within your budget.
Don't try to buy more vehicle than you can afford. If the payment goal you set doesn't give you
enough funds to buy the vehicle you want, you may need to reconsider your choice. Maybe you should look at
a little less vehicle, put some cash down, or consider leasing as an alternative.
Now that you've decided how much you can borrow and you have carefully considered everything, its time
to negotiate for the best auto loan rate you can get. Your goal here is to get the best low rate car loan available to you.
Try to finance or lease for the shortest term possible to get the best auto loan rate you can. The rate the dealer can get you
should be as good or better than you can get on your own. If its not, take your auto loan financing elsewhere. Keep
in mind your best auto loan rate will be based on your credit worthiness, the advance (the amount you are borrowing in
relation to the selling price, the higher the advance the higher the rate), the length of the loan, and
any special auto loan rates that the manufacture may be offering.
For a great source of additional information about the best auto loan rate visit consumer reports.org.
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