moneycontrol asked:

After home loans, it’s the auto loan segment which is heating up. ICICI Bank and Axis Bank have cut auto loan rates by 25 to 75 basis points. CNBC-TV18′s Vidhi Godiawala and Sweta Sriram find out if a car loan war is emerging.

William

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.

Sarah

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.

Steve

Jim Carson Sr asked:




The auto-lending business is no different than any other form of lending. It is, and always has been about risk. Therefore the loan rate you earn for a major purchase, such as an automobile, is a moving target. The rate you earn partly aligns with your credit score, and partly aligns to other factors, such as income, percentage of other debt, money down, etc. The more you know about how loan-rates are assigned, the better you will be able to equip yourself to earn the best rate when you are ready to purchase a vehicle.

Here’s how you go about getting the best interest rate possible: Put the lender in a position of low risk and you will get a low APR.

Here’s a tale of two brothers who go to a local dealership, each looking to buy a used car. Tom, with a high 715 Beacon score has his eye on a five year-old sedan that will allow him to park the Hemi pickup that never met a gas station it didn’t like. Tom has never missed a payment in his life and has paid off most loans early. Brother Mark, armed with a 640 score crosses his fingers and hopes he doesn’t get his head knocked off with a high interest rate as he tries to buy a one year-old sedan. Mark had some slow pays back in the day, and a couple of medical charges that were paid off just before being turned to collection. Other than that he had a history of paying his current truck off with minor hitches. Tom, the 715, is looking to finance his third vehicle. Both he and his wife have new vehicles-Tom being on both loans. Brother Mark, the 640 score, will be trading in his ten year-old truck (paid for). They both have a similar home mortgages, but 640 Mark has no current auto loans and makes $2000 more per month than Brother 715′s modest salary. Finally, 715 Tom buys the five year-old sedan with a 120% carry (indicating that the loaned amount is 20% past the “book” value of the vehicle), while Brother 640 Mark puts $2500 cash down along with the $3500 trade-in value of his truck, giving him a total of $6000 down-which places his loan, 40% under book value.

Let’s compare: Tom has a high 715 Beacon score, but is asking for his 3rd auto loan. He brings nothing to the table in the way of cash down and needs to borrow 20% beyond the loan value of the vehicle. Finally, he is buying a 5 year old vehicle, which sends a red flag to lenders that there is a good chance he will be spending money on repairs. Brother Mark has a 640 score, but lays out $6000 on a one year-old, low mileage vehicle. His down payment places the loan request at 40 under what the banks deem his vehicle is worth at an auction. Who gets the better interest rate? Brother Mark…take it to the bank.

The lowest credit score I have personally seen, in all my car-selling years, was a deal we not only “got done”, it was a deal in which the buyer received a low interest rate. The main reason was that he purchased his used pickup with a very large down payment, so that the amount the lender loaned was considerably under book value. (He also made a decent wage and had a stable time of residence. If you’re a lender, where’s the risk? The buyer, in this case, could have skipped the next twenty payments while the repo guys chased him all over the country and the vehicle-when they found it-would still be worth more than what was owed.

Here’s some tips on keeping your interest rate low:

High Credit Scores: You think you are safe? Well, let’s suppose your grandpa to four of the sweetest college age kids you could imagine. You’re retired, so your income is fixed, and each kid, one-by-one comes to the well called Grandpa to get a co-signer for their auto loan. Grandpa never missed a payment in 40 years, but as the auto loans pile up, the rates get higher and higher because the exposure to the car loans, when compared to Grandpa’s income, make the loans more and more risky to the lender.

If your score is high, keep a balance to your loans versus income. If you co-sign too many times it may impact your ability to get a good loan.

Middle Credit Scores:

(1) Beware of the dreaded “negative equity” (the vehicle you are trading in is worth less than what you owe)…especially if you are putting no money down.
(2) Consider a loan that is fewer months than you might otherwise have taken. (The average auto loan is around 60 months. Lower that, to say 48 months-assuming the loan is manageable-and the loan becomes more attractive to the lender because the risk just went down.
(3) Consider paying more for a newer vehicle. As mentioned in the Tom and Mark story, most lenders raise interest rates as vehicles get older-due to the likelihood of car payment money being siphoned off to car repair bills.

Low Credit Scores:

(1) Have a large down payment.
(2) If you are on the brink of moving or changing jobs, consider buying your vehicle first, while your loan application shows longer job and residence time. Length of job and residence show stability to a lender, which lowers their risk-and your interest rate.
(3) If you were considering paying cash for a vehicle, consider using that money for a large down payment. Then
(4) pay the vehicle off earlier than the contracted length of the loan. This will place you in a position to lower your interest rate down the road.
(5) Consider paying a reputable company to “clean up” your credit report. Taking off bogus bad marks, and settling minor (negative) hits, could place you in a position to either get a loan that you otherwise might not have earned, or could place you in a bracket that lowers the interest rate you might otherwise have earned.
(6) Consider a co-signer (with good credit). (This won’t always lower your interest rate-especially if your credit is torched, but it may be the difference between getting a loan and not getting one.

Robert

Hector Milla asked:




Just like with other loans, your FICO score impacts your car loan as well. The higher your credit rating score is the lower your auto loan interest rate will be. One large error auto consumers make is looking at cars without knowing what their credit rating is and what types of financing they can receive. Many times auto traders lure consumers in with promotions involving funding that includes 0% basic interest rates and low monthly payments.

These promotions are very misleading. It is your responsibility to know your credit rating as well as all of the financial obligations if you have before you even start shopping for a car. What people don’t seem to pay attention to is that these low rates are really reserved for those individuals that have superior credit ratings and not for those who have poor credit ratings.

Another familiar credit score that you may have heard of is an enhanced score, or FICO Auto Industry Option. This is different from your normal credit rating. The major difference between this score and your standard credit account used to obtain an auto loan is that the rates depend on how you managed your prior vehicle loans. If you have a pre-existing bad rating, but you are creditworthy because of the way you dealt with auto loans in the past, you may be able to secure a loan with a much lower annual percentage rate. If you are a first time car buyer, or have no additional automobile funding on your credit account, you are usually not in a position to obtain these types of flexible car loan terms. You will have to build your credit rating in a methodical manner, and as you construct a positive relationship with lenders, your poor credit score will start to increase.

Auto lenders correct their interest rates based on a range of credit rating factors and features. If your score descends within a particular range of relative scores, you will be offered the going rate of interest for that range and that range alone. In most cases, interest rates fall about 4% for every 20 to 40 points that your rating goes up.

Regardless of what your FICO score is, what is important is that you know what needs to be done to increase it so that you can secure an auto loan efficiently and without much hassle.To speed up your process, you should try to pre-qualify for your auto loan online and get your funding worked out prior to shopping for the vehicle of your dreams. When you do this, you’ll know exactly how much you can afford to spend on your car and how it will affect you financially.

Gina

Jason Lanier asked:




Getting approved for a bad credit car loan can be a bit confusing if you don’t understand the in’s and out’s of the system. With the mass of misinformation circulating around the internet, this is very understandable.

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Frank Dervin asked:




These days, getting a loan is not a big deal. Anyone who fulfills certain basic conditions relating to his age and citizenship can raise enough funds by means of loans. But the problem arises when at the end of the year, you find that your monthly salary has been used just in paying the expenses of routine life and no savings have been made so far to pay the installments of the loan.

The fact is that, your monthly savings could have been managed to pay the amount of the loan, but the interest on these loans was so high that you were not able to collect sufficient funds to repay the principal amount even. The same can be the case with the auto loans. But, all these worries have been removed by the help of Cheap rate auto loans. The extra feature of these loans is that these carry a very low rate of interest. It has made these loans the most favorite loans by the UK citizens.

These loans are not only helpful in financing your car at lower cost but also assist you in collecting essential information about different sellers of the cars. This facility is provided online. The expenses that you might have incurred in making market surveys are totally minimized through these loans. Besides this, your time is also saved. This is the most convenient kind of buying the right and most suitable car.

These loans may require you to pledge any of your assets, like your home, to the lenders so that they can offer you the lowest rates of interest. Sometimes, the period of repayment is also influenced by the value of this security. However, the settlements can be made by both of you depending upon the amount of the loan. In addition to this, these lenders also finance the used cars at very nominal rates.

Suzanne

hitesh975 asked:

information-get.com Get Your Free E-Book If your major interest is information related to low auto loan rates or any other such as loan financing with, car financing, guaranteed auto loan or bankruptcy auto loans, this article can prove useful.

Ellen

mschwartzandsons asked:

Save time and money with an auto loan. Apply for auto loans online in minutes and lock in our competitive auto loan rates. to learn more about this great offer, please visit our website at BUY-AUTO.com

Joy

Kalvin Jason asked:




Nobody from the middle class can afford to pay the entire cash at a time to buy a car. At most one can pay some upfront payment and get the rest of the amount financed by someone. The amount of upfront depends upon the type of loan you are taking. This means that there are several kinds of auto loans rates available: both on the internet as well as with your local banker.

While there are limited options available with your local banker, you can find an unlimited number of schemes with the money lenders operating on the internet. You can check out the different schemes of each lender and then zero in on to the best scheme. The auto loans rates vary from lender to lender and within the different schemes available with the lender. You can ask for a quotation or else you can use the free loan calculator available on most websites.

The loan rates depend on the following factors:

1. The amount you are getting financed. This excludes any upfront payment you are willing to make. In case of 100 per cent finance, the interest rate is the highest.

2. The type of loan you are taking: unsecured or secured. Auto loan rates are less for the secured loans as you place some collateral. For unsecured loans, the rates are a bit higher than that of secured loans. For unsecured loans, you do not place any collateral as such.

3. The tenure of the loan: When you take a short term loan, the interest is applied to the loan amount and then is distributed into equal parts. As the number of parts is less, you get to pay higher installments but then you save on the interest. In contrast, a higher rate of interest is applied to longer period. The advantage is that though the interest rate is high, you get to pay lower amount as installment.

To save you the headache of calculations, many websites offer loan calculators so you can yourself calculate the different installments for different schemes and different loan amounts.

Lauren