Car Finance Rate Comparisons

There are many things that you should take in to account with any car finance rate. You should look at more than just the rate itself. Here's a short article explaining what you should look for when comparing finance rates with different lenders.

Of course the rate is the first thing most of us look at. If one lender can offer you a lower rate than another, then the chances are pretty good that it will look more appealing to you. But you also want to look closely at any specials being offered. While one lender may offer you a 0% rate for the first three months, what happens to the rate after that? You may fair better if you choose a lender who has a low rate with no intro period. Often, those intro rates are followed by higher than average rates.

The amount of time you will pay on the car should be another factor you look at. Typically a longer term will have a lower rate, but don't let this fool you. You may be better off paying a point or two more in interest over a shorter period of time. Those longer loans can offer lower rates because the finance company is depending on you paying that interest for longer.

Many finance companies will throw in extra fee's that you won't ordinarily notice. Things like early pay off penalties and increased interest on late payments will hurt you more than they help. If you are able to find a lender that doesn't have these terms, but has a slightly higher rate, you may want to consider going for the latter.