Auto Loan Rates

Getting a low auto loan rate is important when you consider it can save you hundreds of dollars a year. In fact, you should consider the interest rate on your auto loan to be just as important as choosing the right new or used vehicle.

The number one factor in obtaining a low auto loan rate is a good credit score. According to CNN/Money Magazine, “scores of 620 and above are considered good,” however with the recent credit tightening the definition of good could be considerably higher. If your score is well below 620, you may need to consider keeping your current vehicle rather than increasing your debt with the purchase of a new car.

Secondly, do not be an impulse buyer. It is very easy to walk into a showroom, get caught up in the moment and walk away with a less than ideal car loan. It is important to shop around to try and find the lowest auto loan rate available to you.

• Join a credit union. It is simple to become a credit union and they usually offer the lowest auto loan rates.
• Save up for a large down payment. A bigger down payment often translates into lower interest rates because the lender has more security. A twenty percent down payment is highly recommended when purchasing a car on credit.
• Shop around. There are lots of auto loan companies. Be sure to find one that best meets your needs.

When you buy a car through CarsDirect, you not only get a great price and superior customer service, but the opportunity for excellent terms on a loan. A Vehicle Specialist will help you compare loan promotions available as well as help you understand which will save you money. The service is quick, free of charge, and no obligation. In many cases, we can arrange auto loans in a matter of minutes. Start the process of financing through CarsDirect by going to our new car prices webpage.