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.
Joe
