auto loan rates

February 22, 2011

Fixed Rate Car Financing Loans

Robert Worley asked:

Fixed rate car finance loans are like off the shelf car financing loans. They are loans whose rate, amount and repayment duration is fixed. Fixed rate auto finance loans are very suitable for people who are in dire need of these types of loans. These loans are readily available; they are also easily accessible and come with low interest rates that would definitely match the budget of an average consumer looking for a vehicle loan.

Amongst the different kinds of car finance that exists, pre-determined rate financing is the second best kind of loans that one can apply for. They come in second after low interest car financing. Most people who apply for low pre-determined rate auto financing usually find the rates suitable because most lenders that give out fixed rate finance approvals normally fix the rate at the amount that they feel is affordable to all.

A fixed rate car loan comes with, fixed interest rate, fixed down payment, and fixed surcharges. Most lenders and givers of fixed rate car loan may vary the amount that is required as interest rate and down payment. The required amount that a consumer might be required to pay might depend on certain factors such as the amount that he requesting to be financed with, his credit score and the repayment duration that he is requesting for.

Taking out a pre-determined car finance loan has certain disadvantages. Some of its disadvantages emanates from the fact that a fixed rate car financing loan has rigid terms and conditions that are too rigid to be amended to suit customers and consumer preference. Often time, customers and consumers have to readjust their budget and preference to suit that of the loans.

The advantage of taking up a pre-determined rate car financing loan outweighs it disadvantages.


February 19, 2011

Auto Loan Rates – Tips to Negotiate a Lower Car Loan Rate

Hector Milla asked:

Getting your own vehicle is not as easy as it sounds. In today’s age, due to the rough economic times, car rates are very high and it is quite difficult for an average wage earner to purchase a vehicle of his/her choice. However, this should not get you discouraged because there are many schemes through which you can get a car and one of them is through an affordable car loan.

Auto loans come with a lot of strings attached and it can get quite complex. The deals between the lender and car dealer can become complicated. However, in this article you will find some valuable information regarding car loan rates. This information should help you learn how you can negotiate and get yourself a better auto loan deal.

As different cars are available on different interest rates, decide which car you actually want to buy . The second step involves your fixing an amount for the loan you need. For instance, if the cost of car is $30,000 and the customer is willingly making a down payment of $8,000 then the amount of loan should be fixed at around $22,000. This amount also determines the rate of interest at which you will receive the loan.

You can get a lot of quotes from different companies and compare the rates of each. After finding a company with the most suitable rates of auto loan, you have to negotiate for discount. Do not be nervous or afraid of negotiating because as long as you have a good credit, you can ask for lower rates without hesitation. Once you get yourself a good deal, you will be getting a new vehicle without stressing about financial distress.

Keep in mind that if you are not satisfied with one company’s rates, you do not have to accept the first offer. Instead, do as much research as you can on different companies because this is not a small purchase. Buying a vehicle should be based on careful planning which involves negotiating with the car dealer for best possible rates.


Car Loan Interest Rates – What Rates Can You Expect to Pay For Your Next Car Loan?

Jimmy Harris asked:

What are the car loan interest rates, and how much will end up paying per month and total for your next car purchase? These are factors that definitely need to be addressed before you buy your next car.

The basic kinds of loans available are between thirty six and seventy two months, and which you decide to get ultimately is based on how long you plan on keeping the car for, and what you can afford. There are pros and cons two each.

For example, the longer period loans (seventy two months) will net you a lower monthly payment, but also much higher total amount you have to pay off, because it is taking the loan company longer to get the cash.

On the other hand, getting a short term loan will force you to pay a higher dollar amount upfront per month, but a lesser amount overall. Your decision will be based on how long you want to keep the car for, and of course, which you can afford.

Also affecting the car loan interest rates you will be shelling out are whether the loan is secured or unsecured, which definitely plays a huge role in determining the final price. An unsecured loan is certainly much more expensive, but has the benefit of not being required to pay any collateral should you not be able to make your payments on time.

A secured loan is probably your best bet, however, because even though you will have your car repossessed in the event of a default on payment, this shouldn’t even be a concern assuming you have enough cash flow coming in.

The car loan interest rates you will pay are all different, depending on the current interest rates, whether the loan is secured or unsecured, your past credit history, where you are buying the car, and again, how long the loan is for, and the company you decide to go with. However, the general rates are between seven and fourteen percent.

However, keep in mind that the car loan interest rates you see advertised is not the price you have to pay in most instances, when you know some simple crucial haggling tips to get the price down.


February 17, 2011

Need help with a Bad Credit Auto Loan?

decemberkitty02 asked:

Has anyone got a bad credit auto loan? I need one, and can’t seem to find one. I’ve tried applying for a bunch, and can’t seem to get one.

I’ve worked at my job about 10 months, rented for about 1 year 2 months, and make about 1500 a month gross. My credit has been awful since June when I stopped paying on about 8 different credit cards. So it’s definately rated at BAD.

Any feedback would be great! Thanks in advance!


Used Car Loans Interest Rates

Rich Jeff asked:

Used car loans are very useful if you can’t quite afford a brand new car, and are seeking finance for something more within your budget. Many used cars are excellent buys, particularly those less than a year old where depreciation on the new price has occurred, and you can secure yourself a next to new car for significantly less than the new price.

Finance available in the form of used car loans can be either unsecured or secured, although you won’t generally get a secured loan unless your car has been purchased from a dealer and is less than 5 years old. However, you can still get decent rates on unsecured loans, and if you use a car loan calculator to work out what your repayments will be, you will be able to determine what price you can pay for your car, based upon how much you can afford in monthly repayments.

When seeking a used car you should make sure that it is in good condition, particularly the bodywork. Engines and parts can be replaced but not the bodywork, and if that is rusted or holed, than it is going to be costly to maintain. Sooner or later you will have a lot of expensive welding work to pay for. Make sure you take the potential cost of maintenance and repairs into account when calculating your affordable payments.

Another aspect of owning a used car to take into account when considering a used car loan is that of insurance. Unless your car is less than two or three years old it might not be worth going comprehensive, and the lower your insurance costs, the more you will be able to afford for your car loan. What you should do then, is to check out the used car that has caught your eye, find out how much it will cost to insure at the level you want, and make sure that it is not in immediate need of repair.

Then figure out your maximum monthly expenditure, deduct insurance and estimated repair costs and enter that into a car loan calculator long with the price of the car and the current rate of interest. That will tell you over how many months you will have to pay the loan.

What you do then is to find a lender that will lend you that amount of money over the period that you need to borrow it. If the stated interest rate is higher, then the period will be longer, and if the rate is lower, such as for a secured loan, then the period of repayment will be less.

It is a fact that unsecured loans demand a higher rate of interest, since secured loans have the car as security, which will be taken from you if you are unable to pay. An unsecured loan is more of a risk to the lender, although they have other ways of getting their money back. It does, however, demand a higher rate of interest, and it is of extreme importance that you can pay that plus the principal amount borrowed for your used car loan.

Hence the importance of using a car loan calculator to calculate the monthly payments you will have to make. However, you can also use it to find out the total cost of your loan. This could be useful if you have the cash to pay for the car, but would perhaps rather just pay it up and keep your cash in your savings account building up interest. When you calculate how much the loan was costing as opposed to the interest you would earn keeping your money in the bank, it might shock you.

Knowing the total cost of borrowing is very useful, particularly for used car loans where you might be paying a higher interest rate than for a secured new car loan. However, if you make sure that the interest rate stays the same for the full term of the car loan, then you won’t have any unbudgeted increases that can cause problems for some people. A fixed interest rate should be the #1 item on your used car loan shopping list since it is the best security you have.

Your car loan company wants their security, so you make sure that you get yours! You might also be able to negotiate the frequency of repayments. If you get paid weekly it would likely suit you best to make weekly payments, since it is easy to forget to save the money for the loan for the end of each month.

Used car loans are available at good rates, but if you do your homework and calculate your payments using a car loan calculator, you will be able to avoid potential problems with your repayments being higher than you expected. Always enter into a used car loan agreement with your eyes wide open.


February 16, 2011

Lowering Your Interest Rates on Auto Loans

Jose Perez asked:

Lowering Interest Rates on Your Car Loan

Due to the low demand for cars, auto loan providers have been drastically cutting interest rates. As the demand for new car rises, these auto loan industry will be forced to change policy on their lending guidelines. This means that in the near future, interest will be going up. In case you were waiting to get an auto loan, now is the best time for you to do just that.

A lot of auto loan shoppers do not pay any attention to the rates or term on the auto loans. They only thing on their mind at that given time is that beautiful car which they will be parking in their garage very soon. If they would concentrate rather on the rates and terms been issued to them, they will definitely be paying lower interest rate on that car loan. Imagine a five year loan were you are able to save $40 a month because of reduced interest rate, that would fetch you over $2000 in savings. Imagine what you could do what that money.

They are various ways reduce your interest rate. The best way to lower your interest is to shop around. By getting as many quotes as you can, you will be able to get the best deal out there. If you are afraid that shopping around might reduce your credit score, there are some companies online were you can submit your information with an idea of what your credit score might be. These companies will take your information and submit it as many lenders as possible. it is best you have a firsthand knowledge of your credit report before you after that auto loan.

By paying points on the loan, you can actually buy down your rate. This will actually reduce your interest. Most lenders will actually allow you to pay points on your loan in return, you will get a lower interest rate. If you can afford the extra charge, then I would advise you to go for it. By going this route, it will definitely reduce your monthly payment. When your monthly payment is checked with your monthly personal expense, the lenders will see that you are at less risk of defaulting.

Whenever you go searching for an auto loan, you should keep getting a lower interest rate in mind instead of wondering about the sweet ride you will have while driving home. Keeping focused when shopping for a car loan will save you much in the long run.


Would you recommend a student loan for consolidating outstanding debt?

PJ asked:

Auto loan, Credit Card, Personal Loan. Interest rate is very low compared to these. Your take on a good option and do you have to be fully enrolled, meaning a full time student at all times during the loan process? Thanks.


February 12, 2011

Auto Loan Rates

Roger M Davis asked:

Auto Loan Types and Rates

What auto loan types are out there? Auto loan types include secured, unsecured, direct, indirect, long term and short term. A secured auto loan uses your car as collateral. A direct auto loan is where a bank gives the loan directly to the borrower. An indirect auto loan is sold by a dealer to a third party financial institution that owns the loan contract and collects payments from the borrower. You can usually receive a long-term loan if you purchase a car that is new or only slightly used. On a vehicle that is three years or less you should have no problem getting a long term loan for up to 72 months. Short-term loans are for used vehicles that are 4 years or older and usually available for shorter terms of 24 or 36 months.

What factors do interest rates depend on? To name a few would include, credit score, type of vehicle, length of loan, type of loan, leasing versus buying. If you happen to have bad credit or some bad marks on your credit report you can still get a car loan but the interest rates you get will most likely be a lot higher. There are some car loan companies that specialize in high risk car loans and market directly to people that are in a bad place financially. But these high risk dealers are not out just to help the man with bad credit the dealer also gets his cut of the pie, by the consumer paying extreme amounts of interest. You must read the fine print because there is a little known rule called “Rule of 78s.” The Rule of 78s is a mathematical formula that’s makes payoff early a punishment. Which is different from the Simple Interest loan which has no punishment for early pay off. The Rule of 78 is illegal in installment loans of five years or less in 17 states including: Arizona, Michigan, Delaware, Minnesota, Idaho, Nebraska, Iowa, Nevada, Kansas, New Hampshire, Maine, New York, Maryland, Oregon, Massachusetts, South Dakota and Vermont.

Some ways of shopping around for good rates are: Online loans, Credit Unions, Dealer auto loans, and Home equity loan.

Online Loans allow you to search the competition between different auto loan lenders and providing you with competitive interest rates for your auto loan. Doing it this way you can take your time and not feel pressured to settle on either a vehicle, payment or rate. This way you can compare many different places while sitting in the comfort of your own home.

Credit Unions offer simple solution to locate your auto finance rate. It is almost instant approval of auto loans. You do need to be member of specific credit union to get an auto loan through them.

Dealer auto loans have been sources of financing your car for a very long time. Dealership loans are very easy to get and takes only in few minutes. However, these loans are usually higher interest rates.

Home equity loans offer excellent auto financing options. You provide your home as collateral and receive your vehicle. Interest rates are higher but you get to claim it on your taxes at the end of the year. In order to compare car insurance rates and see if you are paying to much you should check a Car Insurance portal.

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