Many people wait until they find a car they like
to secure a loan. This is what dealerships want you to do. Dealers
that offer to finance your car always inflate the interest rate
to profit from the transaction. Don't be suckered into a last minute
loan - apply ahead of time and get a better rate from the start.
You'll have one-up on the car saleman when they find out you already
have a loan lined up.
Below are the leading online websites that offer low rate auto
loans. Click here for some tips
on finding a auto loan.
Shop for a loan like you shop for a car. While you
compare the car prices from different vehicle sellers, don't hesitate
to compare the 'Annual Percentage Rate' on car loans from different
financing sources. These sources include banks, credit unions,
and dealerships themselves.
Determine how much car you can afford. Once you've
secured the lowest rate (APR), you can determine the differing
monthly payments depending on the life of the loan. Most financing-related
websites feature loan calculators for just this purpose. Also,
figure the total cost of your loan. Multiply your monthly payment
by the total number of payments over the life of the loan.
While a 72-month loan looks attractive with its lower payments,
the total cost of the loan is considerably higher than a 48 or
60 month loan.
Settle on a down payment. If you're financing a
used car, most lenders will request a down payment, usually 20%.
If you are able to put more down, go ahead. It will save you money
in both the short term (monthly payments will be lower) and the
long term (the amount of the loan over its life will be less).