How to Get Low Car Loan Rates

January 26, 2012

Getting a low car loan rate is easy if you have a few qualifications and follow some simple guidelines.

Tips for getting a low car loan rate

We recommend you obtain an accurate copy of your current credit report before you look into getting a low car loan rate. Experian, Equifax and Trans Union are the three main credit reporting agencies. Each of these agencies will supply you with one free credit report each year. You can get this report at AnnualCreditReport.com. You’ll need a credit score of 680 or higher to get the lowest car loan rates.

Other factors to consider:

  • You will get a lower car loan rate the shorter your term. For example, you will get a lower interest rate if you finance your car for 36 months instead of 48 months.
  • You may be able to lower your loan rate if you agree to let the finance company automatically withdraw your car payment amount each month. Though not a big discount, over time it can save you hundreds of dollars.
  • Getting a low car loan rate is easier if you qualify for a car loan from a prime lender instead of a sub-prime lender. Prime lenders offer substantially lower car loan rates. CapitalOneAutoFinance.com, Bankrate.com and LendingTree.com are great websites to start your search.
  • If you are pursuing financing with a dealer don’t be afraid to negotiate and be sure to inquire about dealer incentives, discounts and rebates. Obviously, dealers are motivated to sell the car so you can end up paying less in the long run if you negotiate the loan rate.
  • Increase your down payment to at least 20 percent. The bigger a down payment the lower your car loan rate will be.
    • Finally, if you do not have good credit it might be wise to wait a few months. Waiting gives you the opportunity to raise your credit score, save a larger down payment and give you more time to shop around for a low car loan rate.

    Low Car Loan Rates with CarsDirect

    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 car loans in a matter of minutes. Start the process of financing through CarsDirect by going to our new car prices website.
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