Applying for a Car Loan Rate – Some pointers

Jan 11 2010 When you apply for a car loan for a new vehicle or for a used car loan, you want to get the best deal. Given below are some pointers on how to get the best car loan interest rates.
a) At the outset, determine your credit rating as this will have a direct impact on the car loan interest rates. Financial institutions rely on this credit score to offer car loan interest rates as they wish to be satisfied about your credentials and ability to pay back the car finance taken regularly and not default. For your credit rating to show the best score, you need to settle all outstanding loan payments.
b) Be aware of lenders who promise low monthly payments. Your focus should be on the car loan interest rates and it would be ideal if you look for low fixed interest rates on your car finance. For this you will have to compare car loan rates for both new and used cars and can decide only after that process is completed.
c) If you can, make a larger down payment on the car loan so that your outstanding becomes manageable. This is especially relevant for used car loans.

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