Car finance – Look for opportunities to lower the interest rate

May 20 2010 Though interest rates are low and lenders are beginning to advance car loans with greater ease and promptness than before, it is advisable to take full advantage of the situation and lock in such low interest rates so that when the rates do go up, you are not impacted.
People generally do not pay much attention to the car loan interest rate and its impact. That is quite ironic because ultimately even small changes in the rate can make a difference in the monthly payout. For example a saving of just $50 in a month translates to a saving of $600 in a year and when you consider a typical five year loan tenure, it is a whopping $3000.
One way of reducing the interest rate on your car loan is by comparing loans offered by different lenders and negotiating aggressively to get the best offer. Another way is to offer pay points on the car loan you are about to take. This upfront offer from you will be welcomed by lenders as they will view you as a lesser risk and will bring down the rate of interest.

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