ALT-1 Ways to Save Money on Car Loan Interest Rates
Car loans can be complicated or easy, depending on where you go to get one, what vehicle you are buying, and several other factors. Never-the-less, at some point in our lives, we all have to go through the process. There are ways to make it easier and cheaper.The first thing that everyone should establish is a relationship with a particular bank or credit union, so that when it is time to take out a loan, they know who you are. If you have had a loan at the establishment in the past, and paid it off quickly and on time, so much the better. Often credit unions will offer the lowest rates and best overall conditions since they are smaller, and are basically owned by those that bank there.Once you have established the kind of car you want, and the amount of the down payment, the lender will want all the information about the vehicle. If it is a new car, the price that has been determined will pretty much be accepted by the lender, if it isn’t excessive. If it is a used car, they will research the Blue Book price to determine if you are overpaying. In the unlikely event that they end up with the car, they do not want one that is not worth the initial cost.The down payment, will of course determine the amount of the loan, and the size of the payments. It may also improve the rate that you end up with.There is no way to get around the fact that your credit rating and your past performance where borrowing is concerned will factor into the rate that you receive. Lenders do take into consideration how much you make, how much you owe, and the likelihood that you will actually be able to make the payments. When you are planning to apply for a car loan, having your credit in good order, is a big plus.Lenders will insist that you buy full coverage insurance, and they may suggest that you have an emergency policy that will cover payments if you become disabled or die. This is a minor expense, and is well worth the price. They may also offer gap insurance, a form of insurance that is also economical and covers whatever expenses are left over if your vehicle is totaled.Saving money and getting a good rate with any car loan starts initially with saving money for the down payment. After that, it is a question of finding the right lender, and proving yourself worthy of a good deal.
