Posts tagged car loan

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.

Here Are Some Tips For Buying A Used Car

One of the main things that you should be concerned with, when trying to get a used car loan is the vehicle itself. First, you should

Used Cars Fort Lauderdale

Used Cars Fort Lauderdale

make sure that you are purchasing the automobile from a reputable used cars fort lauderdale dealership. The reason this is important is that there are a lot of used car dealers that have vehicles on their car lot that are not checked out properly to make sure that they only sell cars that are in good condition. Whenever possible, you should try and get a used car that is still under some type of warranty and if you can find a pre-owned vehicle that only has one owner then that’s even better.

Once you find a used car, truck or van that you like and if you do not know a lot about cars, then you should hire a mechanic to check out the car for you, before you make a final decision. What most consumers do is just buy cars based on the looks alone, but you have to understand that when it comes to buying a used car, this can be a big mistake that could end up costing you thousands of dollars later on. Pre-owned cars can look great on the outside, while at the same time the vehicle could be hiding a variety of different mechanical problems, such as engine problems.

You should always test drive a car on both the highway and local street to see how it performs and don’t be afraid to test drive it multiple times before you make a final decision, as you don’t want to get locked into a car loan that is on an unreliable car. Auto loans are pretty much based on your ability to pay and your credit worthiness. If you have good credit, then you won’t have any problems getting qualified for an affordable low rate auto loan. If you have bad credit you can still qualify but you will probably get a higher interest rate and put down more money.