Car Loan Interest Rate Advice
Calculate the car loan interest rate is an important step in car purchasing process. Interest rate will direct affect the loan term and the overall cost. Thus, ensure you are familiarize with auto loan and the market rate. Select the low rate with minimum admin charges.
Tips of getting a good auto loan interest
1) Searching loan from banks, financial institutions and dealer. Finding the best rate, term with minimum charges.
2) Use home equity loan instead of auto loan. The interest of home equity loan is generally lower than car loan. In year 2004 the rate for home equity is 6.91% yearly, whereas the car loan interest is 7.51% per year.
3) Another option is variable rate loan, the rate of variable loan is normally lower then ordinary car loans also.
4) looking for the auto loan allow for refinance, lower your interest from 1-2%. Although the saving is little, but you may use the extra money from saving to enhance your car accessories or for other uses.
5) Improving your credit score by paying 50% of the card limit, replace a high interest credit card with home equity loan. After the credit rating improved will leverage you to negotiate for lower interest rate.
The rate is the main factor to determine the interest of the loan, more or less is sole depend how is the rate acquire. But do not impress by the lowest rate offer by certain lender, they will impose an extremely high fees charges. Add up all costs, the offer might not be worth.
Thus after knowing the rate of the loan, you must add up all relevant charges to see the entire loan amount.
For more car loan information, please check out Car Loan Guide instead of Car Loan Interest Rate
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