auto loan rates

Alan Drakovic asked:


Most buyers have this very same way of thinking when buying a car: the moment they set eyes on the car they want, they immediately fall for it and brought one home without determining the rates that come along with it. Feeling the same thing is typical for a wise and responsible buyer, what with its spectacular profile and seamless totality, the preferred car would surely be a hit. But the big difference is, a responsible buyer would primarily ask for auto loan rates prior to taking the car home, something that impulsive buyers wouldn’t dare think of.

So, what are these rates in the first place? Auto loan rates are charges estimated as a percentage of a higher figure given to a borrower on the condition that it will be repaid at a specified period of time. There are two types of auto loans and each type represents different rate calculations. The secured auto loan is deemed as a type of loan that provides a borrower with competitive interest rates and fees, longer tenure of repayment, and greater loaned amount. Conversely, an unsecured loan is a type of auto loan that offers expediency especially to those people who prefer faster approval with lesser documentations and paperwork to accomplish. However, auto loan rates are changeable reliant on the type of loan you choose, the security you provide or collateral for secured loans, if any, and the amount of your initial payment.

To get a good rate on your car loan, you would need to follow these simple tips:

1. Look for credit union offers. They mostly give the lowest rates compared to rates offered in banks.

2. Look for pre-approved offers. Asking your bank about this will allow you to extend your negotiating capacity. Since you have an idea as to how much the amount of loan you can get, it is much easier to negotiate with different car dealers.

3. Look for the shortest tenure loan. This is more advantageous weigh against longer-term repayment process as interest rates are lesser and more economical.  



Charlotte