Here Are Some Tips To Reduce The Interest Rate On A Car Loan

sports-car-633291_640Other than buying a home, your second largest investment will be more than likely a car, now there are a few things we would like to go over with you, that could help to save you money in the long term so that your vehicle will not end up costing you more than it needs to.

If you are buying a used car from an auto dealership, you should know that they typically increase the base interest rate by 2 and a half points on average, which could end up costing you more than seven hundred dollars.  So if you want to save some money by getting lower interest rates on your auto loan, you should first apply at your local bank or credit union to see what they have to offer as far as rates are concerned.  Then you know how good a deal you will be getting from the car dealer.  Credit unions and banks in most cases will have the lowest rates unless of course you are buying a brand new car, then the dealers will be able to give you lower rates and in some cases 0% financing.

If you are shopping for your automobile at a larger dealership and not one of those small buy here pay car lots, then you can ask the salesperson about if there are any financing incentives available to you today from the manufacturers.

And even if you do decide to get the loan from the dealership, you should still ask them if that’s the best rate they can offer you, or what are your options to get a lower rate.  Other than the price and age of the car, the other factors that affect your interest rate is the amount of your down payment and your creditworthiness.  Remember, it never hurts to ask, all they can say in no.

Other things you may consider doing is reducing the term of the loan, but if you do this, you have to understand that while the rate will be lower, the payments will increase because you have less time to pay the loan off.  But you will save a lot of money on interest with a shorter term loan.  Some lenders also give rate discounts if you set up automatic payments.

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Did You Know That You Can Get Cash For Your Unwanted Car?

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Do you have an old used car that you no longer want, maybe it is in running condition, or it’s a complete junk? Is your automobile an eyesore to your neighbors because the body is rusted all over? If you answered yes to some or all of these questions, then you should know that there are companies in your local area that are looking for these types of unwanted cars, trucks, vans, sports utility vehicles, etc. These companies will gladly pay you cash for these motor vehicles, as they will either be able to resell the car on the retail market once they fix it up, or they will sell it to a junk yard that will use the auto parts that are still good. They can even sell it to a car metal recycling company.

As you can see, there are many uses for your unwanted car; this is why you can find these types of cash for car companies just about in every major city across the United States. Most consumers that have a vehicle they don’t want just park it somewhere in their yard until it becomes a problem with the association or their neighbors. Then they are forced to remove the car and in most cases, they will just give it away for free to anyone that will tow it off their property.

As most consumers know they can’t just dump a car themselves on the side of the road, because it is illegal. What will happen if you do this is the cops will find out who the vehicle is registered to and then send them a ticket in the mail with a fine which is usually a few hundred dollars.

So if you have an unwanted car, look online or in any local newspaper, and you will see multiple “We Buy Cars For Cash” advertisements for companies that will take the vehicle off your hands today, whether it is running or not.

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