auto loan rates

March 25, 2011

A Look at Car Loan Interest Rates

Filed under: Finance — Tags: , , , , , , , , , , , , , , — @ 12:18 am
Camillo Nanyah asked:




Interest is the amount that accumulates once you borrow a loan from a bank or any other financial provider. The rate of accumulation will therefore determine how much you will need to pay in order to clear the loan. Every first Wednesday of the month, the federal reserve bank of Australia determines whether there should be a rise or fall in the interest rates. This normally affects loans in all sectors of the economy including car loan rates.

If you are looking for a vehicle to purchase there are many considerations that you should have in mind. The first thing is how you will finance the purchase. Paying for the purchase is actually a higher consideration than which model you are going to purchase. This means that many people will opt for a car loan in order to finance the purchase. The type of car loan you go for will be determined by the interest rates offered among other issues. It is therefore important to compare car loan rates provided by different financial institutions. This will ensure that you pick the one you are most comfortable with.

What determines car loan interest rates?

The rates for car loans are mainly determined by two main factors. These are the amount, which is borrowed, and the duration of the car loan. Going for a long-term loan will mean lower interest rates. However, you might end up paying a lot more for the loan than someone who opts for short-term repayment. Although these two are usual points, the task of calculating how much to apply for and how long it will take to repay is usually a hard task. Apart from the amount or duration, the interest rates will also be determined by the kind of vehicle that you intend to purchase. Most of the banking institutions will charge a higher rate to finance a used car compared to the new ones.

Another common determinant of the loan interest is the vehicle source. For instance if you plan to buy an imported used car, the financial institutions will either charge very high interest rates or subject you to rigorous procedures when applying for such a loan. In such a case, the best alternative would be to get a personal loan and use it to finance the purchase. Car loan interest also differ depending on whether the loan is secured or unsecured. An unsecured loan will obviously attract higher rates.

Sometimes, when you are choosing a car loan, you might want to add extras such as comprehensive car insurance, stamp duty, warranties for breakdowns, registration or any other road cost that might be incurred. If the lender approves all these additional, you will be required to pay a higher interest rate since the repayment period remains the same.

How to secure the best car loan interest rates

The first rule to be observed when one is looking for the best interest rates is to exercise patience and carry out thorough research. You should refrain from taking offers from banks and car finance institutions before considering other sources. These days so many financial institutions are offering their services online, which make it easy to compare different rates. You can also use the services of car finance brokers who will point you in the right direction.

Elmer

March 19, 2011

India Car Loan Rates – How to Find Your Best Auto Loan

Filed under: Finance — Tags: , , , , , , , , , , , , , , — @ 10:58 am
Kamalkk Kannan asked:




India has several good government and private banks that offer different car loan schemes with varying interest rates. It is natural for buyers to get confused looking at completely varied auto loan rates and schemes. There are simple ways by which you can compare and contrast car loan rates offered by different banks.

Start your comparison by classifying the banks into two broad sectors. One would be government run banks like State Bank of India, Union Bank, Punjab National Bank etc. Other category would be private ones like HDFC, ICICI Bank, HSBC Indian Bank etc.

Government run banks generally would have strict regulations when compared to private run banks. Hence car loan interest rates from government banks may not be as attractive like those of private banks. Here you will have to make a choice whether to go for attractive rates by private banks with possible hidden costs or go for government banks that are much safer to deal with.

Once you have decided your category, you will have to zero down based on the amount you would like to borrow. For example, ICICI bank offers attractive rates for smaller cars with value over one lakh. The limit and auto loan interest rates would be different across banks for different amounts.

Some car manufacturers have tie ups with banks to help customers with easy finance options. For example, Citicorp India would be offering attractive rates when financing selective cars including Maruti 800 (which is a popular small low priced car).

Finally you would be left with two or three banks with two or three loan schemes. Among these you will have to make a strict comparison of the interest rates and repayment periods to arrive at your choice. These data can be found from several leading websites and portals from India.

Alan

February 19, 2011

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

Filed under: Finance — Tags: , , , , , , , , , , , , , , — @ 4:18 pm
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

January 10, 2011

Which Lenders Offer Good Auto Loan Rates?

Filed under: Finance — Tags: , , , , , , , , , , , , , , — @ 5:19 pm
Robert Worley asked:




You can secure a good auto loan rate for your vehicle if you look for it in the right place. Your choice of the right lender for your auto loan must be based on your credit score. Either a prime or a subprime lender would be able to cater your loan request though the most practical way to go about getting a car loan would be to request for quotes from online lenders and then narrow down your search from there.

Your credit score may make you eligible to apply for your loan from either a prime credit lender or a subprime credit lender. Prime lenders offer loans which are elementarily different from those offered by subprime lenders. A prime credit lender caters to people with the best credit scores, based on the company’s rankings a prime lender may cater to people with a minimum of 650 credit points. People with lower credit scores are catered by subprime lenders, subsequently; the car loan rate offered by the prime lenders are the lowest and most flexible, while subprime auto loans not so much.

Some lenders offer their services without disintegration of credit scores, though even they consider a persons credit history before giving an automobile loan. You will even come across lenders willing to sanction your loan instantly, even without a checkup of your credit standing, though dealing with them is only recommended if you are in need of financing on an urgent basis.

Though subprime automobile loan lenders or bad credit auto loan lenders offer tend to offer interest rates higher than a prime lender, the interest difference may not exceed 2 to 3 percent in annual interest. In fact some subprime lenders also show flexibility and offer rates just a little bit higher than a prime credit rate.

To find the best car loan rates it would be recommended that you do your own survey. A point worth remembering here is that lenders usually don’t mention any of their fees in the quote they offer to you initially. The trick here is not only to look at the interest rates offered but also to consider all the fees being added in the total. Keep our eyes on the sum total, the amount you will loan as well as the amount you will have to pay back and you will have a pretty fair idea which deal is feasible for you and which is not.

Kathryn

January 5, 2011

Factors That Affect Car Loan Rates

Filed under: Finance — Tags: , , , , , , , , , , , , , , — @ 7:15 pm
Peter Gitundu asked:




Buying your dream car when in financial distress can be made possible by taking a car loan. There are finance companies that will give you car loans as they strive to help you achieve your dream. What differs in the services offered are the loan rates. This tells you that, you should make a comparison of all the companies that offer these services.

Be keen on what you see being advertised because some may offer you lucrative rates but exploit you on the side. The car financing rates will be affected mostly by two factors, which are, the amount you wish to borrow and the repayment period you wish to take to clear the debt. This may sound simple and you may actually dismiss it as common sense, but wait till you have done your calculations and you realize just how much money is at stake here. You can make use of the online finance calculator for an easier estimate.

The rates will also be affected by the type of financing you are applying for. These include, personal unsecured loans and the secured ones. The former will attract higher interest rates. Secured means that the automobile will serve as the collateral for the financing, meaning that the financing company may repossess your auto if you default on payment.

Another factor that the financing company may wish to consider is whether the car you are going to buy is old or new. If you are buying a used one, the rates may be different from those charged on a new auto, and in most cases, they tend to lean towards the lower side.

Joe

January 2, 2011

Find the Best Used Car Loan Rates

Filed under: Finance — Tags: , , , , , , , , , , , , , , — @ 6:10 am
Todd D Bertshinger asked:




Dealer ads frequently announce “the best used car loan rates available”, but the interest rates differ enormously, so how do you know who is telling the truth?

And it is not just the auto dealerships who put out billboards offering the best car loan rates in town, finance companies and a variety of other financial institutions go down the same path.

So, short of getting out your financial calculator to work out the maths, how does anyone in the market to buy a used car know if they are getting the ‘real deal’?

While the solution to finding the best used car loan rates in Australia may not require a calculator, it does require some research if you want to reap the benefits.

Many people head to their bank or credit union initially. While the major banks, and more particularly the credit unions, offer very competitive rates for used car loans, their lending guidelines are very stringent, making it virtually impossible for the average guy in the street to meet the qualifications.

So, back to the car dealerships or the local used car lot, where car finance is readily available – generally with a hefty fee for service or interest rates that would leave the proverbial loan shark slack-jawed! But that is not always the case; the large, prestigious used car dealerships generally work in partnership with one of the large finance companies and occasionally you will find used car loan rates that are close-to-competitive.

In many cases, the loan rate offered will depend on how badly the dealership wants to sell you the car and whether the markup on the vehicle you want to purchase is sufficient to make their sales quota for the week. In the majority of cases, the dealership earns a commission on every new used car loan they initiate, so they are going to get you – one way or another.

Savvy buyers are now going online to find the best used car loan rates available by using one of the quality loan providers/brokers. Online loan providers take all the hard work out of comparing used car loans and rates between various financial institutions by doing the comparison shopping for you.

In most cases, online used car loan providers work with a variety of lending institutions who offer a number of different loan products. By completing an online form that requests personal and financial details, the loan provider can assess your circumstances and current position and then determine which of the lenders they have agreements with will provide the best match for your individual needs.

Some of the criteria they take into account are:

The deposit you have available

* Your current employment status

* Your ability to repay the loan

* Your previous credit history

* The market value of the car and the amount you want to borrow

* The term over which you would like to repay the loan

* How old the used car is

The most important factors are a stable employment history, a sound credit rating and the ability to repay the loan over a reasonable period of time. Many online loan providers guarantee to get back to you within 24 to 48 hours with an answer. This time is necessary for them to verify and confirm the financial information you have provided.

Because the loan providers have contracts with a number of financial institutions, they can use their network of lenders to obtain the best used car loan for the amount you want to borrow, the required loan term and the monthly repayment schedule.

So if you have been pulling your hair out looking for the best loan rates, you can put down your calculator and grab your computer mouse instead and head online. All the work is already done for you, so you can relax in the comfort of your office chair while browsing the Internet and not only find the best used car loans in Australia, but the best used car loan rates as well. Now, isn’t that a pleasant thought?

Theodore

December 25, 2010

How to Compare Car Loan Rates

Filed under: Finance — Tags: , , , , , , , , , , , , , , — @ 6:26 pm
Susanne Svette asked:




Although pulling a new vehicle into your driveway for the first time can be exciting, car shopping is an experience many people dread. Choosing a vehicle and negotiating the price of your new automobile can be a difficult process, not to mention, you incur new debt when you take out a car loan.

Get the best deal on your new car by understanding how car loans work, learning how to budget for a new car loan, and using a car loan calculator to determine your monthly payments.

Determine Your New Car Loan Budget

Before you begin shopping for a new car, figure out exactly how much car you can comfortably afford by creating a monthly budget. To do this, deduct all of your monthly expenses, including everything from rent and mortgage payments to spending cash, food and other necessities, from your income.

The amount remaining is the free income that you can put toward a new car loan. Be sure to choose an amount that leaves you financially comfortable. You should still have money left over to pay for emergencies and regular deposits into your savings account. A good rule of thumb is to commit no more than 20 percent of your monthly net income to a car loan.

Also, you should understand how long you can commit to the monthly payment terms. New car loans are typically repaid in increments of one to five years, while the maximum on used car loans is about three years due to depreciation. For the best deal, look for a loan with the shortest repayment period possible. It’s simple; you’ll pay less in interest.

Finally, know your credit score. Not having these three key pieces of information ready before applying for a new car loan is the biggest mistake new car buyers make when it comes to finding and choosing the best car loan rate.

New Car Loan Rates vs. Used Car Loan Rates

The next step is to determine what type of car you want to purchase: new or used. This will affect your car loan rate. Used car loan rates are typically higher (about one percent) than new car loan rates because it’s easier for a lender to recoup the losses if a new car loan goes into default. This means that over time, purchasing a less expensive used car at a higher loan rate can sometimes be comparable to buying a more expensive car at a lower rate.

The example below illustrates how you can buy more for about the same monthly payment depending on the interest rate. Since new loan interest rates are typically lower, or you may even qualify for a zero-percent deal, you could buy a more expensive vehicle and spend less over time.

New Car: $15,000 at 0% interest rate for 36 months = $15,000 ($416.66 monthly payment)

Used Car: $13,500 at 7% interest rate for 36 months = $15,006 ($416.84 monthly payment)

Regardless, it pays to shop around for the best car loan rate. Search online for local new and used car loan rates, or call your financial institution. Check the Sunday classified ads for car loan deals at your local dealerships, too. Credit unions are another good source for car loans. They typically offer lower interest rates than larger lenders, but are usually more selective when it comes to offering loans.

Bad Credit Car Loans

The best thing to do if you have poor credit is to avoid a new car loan. It can cause you more problems than it’s worth in the long run. Clean up your finances first, and then buy yourself a fabulous (but affordable) new car as a reward.

However, if you absolutely must have a new car and need a loan, get a car loan pre-approval. This means you get your loan first, and choose your car second. Of course, this limits your ability to choose your car and dealer brands because your ability to obtain a car loan depends on each dealer’s ability to find a lender. For example, your favorite Jeep dealership may not be able to find a lender for you, but the Chevy dealership across town may be able to offer you financing.

If you don’t have a car loan credit history, or your credit score is below 600, don’t waste time filling out car loan applications. It can damage your credit even more. Instead, search online for a company that will locate a high-risk lender for you.

The Car Loan Calculator

Usinga car loan calculator can help you determine if you can afford that sleek new Mercedes, or if you should opt for something less expensive. It will ask you to enter the:
Price of the car Sales tax rate Other costs (title, registration, etc.) Cash rebates, down payment, trade in value and estimated trade-in value payoff (if applicable) Car loan rate Terms

Experimenting with a car loan calculator can help you determine the true cost of a new vehicle and understand how much car you really can afford. In addition, a car loan calculator shows how much impact a lower rate, cash back rebate and terms can make when comparing car loan options.

Erik

December 13, 2010

Used Car Loan Rates Affect Car Value

Filed under: Finance — Tags: , , , , , , , , , , , , , , — @ 1:21 pm
Louis Rix asked:




Buying a used car can be an intense process. One way consumers can reduce the stress and make the process enjoyable, is to have financing planned before looking for a car. Used car loan rates are very low in today’s competitive, low interest rate market. Used motor loans are often a little more challenging to get good deals with than new cars. This is because the lender may have trouble finding information on the vehicle’s history. However, in the competitive internet environment, which has become driven by loan brokers and specialists, rates are as competitive as ever.

Historically, car buyers have often depended on dealer financing plans. Buyers would go to a car dealership, look for a car, and once selecting a car, be hit with aggressive loan selling tactics. Dealers like to sell loans to consumer for two reasons. First, their financing rates are usually higher than the loan market meaning their income is greater. Second, they can more easily influence the buyer to make an immediate purchase rather than risk them changing their mind. These factors have led to many dealers pressuring buyers to take on dealer financing in order to drive away with their used car.

A major factor that has contributed to many consumers being stuck with expensive dealer financing is a lack of consumer education. Many buyers simply have been unaware of the loan options available to them. The lending market is usually much larger than most consumers are aware. Thanks to the internet, more consumer education and resources are available now than ever. Borrowers can learn more about the car buying process and loan options before going into buy a car. This preparation helps consumers’ better handle dealers when they begin talking about financing.

Loan specialists have given much greater access to cheap used car loan rates. They are independent brokers who maintain a large collection of provider relationships. This enables them to offer consumers access to the best products and loan providers in the market. Because of the power these independent brokers have developed, most brokers offer their best used car loan rates through them. Consumers can go to a specialist web site, enter some basic information, and quickly become aware of the best loan products and best rates available. Brokers are also generally extremely customer-oriented and anxious to get buyers ready for the car buying experience.

Used car loan rates greatly affect the total cost of buying a used car. Finance costs are a big part of the total cost of buying a car. Research has recently demonstrated that dealer financing options tend to cost 1,000-1,500 pounds more than lender loans. This has created greater interest from consumers to explore their financing before going to the dealer. Consumers are more empowered now and can focus on finding the best car deal. There is less obligations to negotiate car and finance purchases together. Ultimately, this separation gives buyers the best total car value because they can negotiate car deals and financing deals with focus on each independently.

Clyde
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