There are several factors to consider when seeking financing and the rates available. When you start considering purchasing a vehicle you undoubtedly will want to find the best auto loan rates for the transaction. First and foremost is to determine your credit rating and FICO scores for the major credit bureaus as this is the primary information most lenders will review to match you to their auto loan criteria. Other factors include the vehicle being purchased, whether the car is new or used, down payment being tendered and income. Credit reports may be reviewed annually for free once per year for each of the three major credit reporting agencies; Equifax, Experian and TransUnion. Armed with this information you may pre-select the vehicle desired and per-arrange financing, securing the best rates available for you.
New Car Dealership Special Financing
The lowest rates are usually provided by new car dealerships. Manufacturers often offer financing specials on their vehicles. These deals may secure financing on vehicles purchased through the dealership with interest rates as low as 0%. These loans generally are offered to consumers with good to excellent credit with set non-flexible terms. If the low rate and terms are appealing to you this is an easy no-nonsense process.
Financing Vehicle Loans Through Credit Unions
Credit unions offer some of the lowest competitive rates for new and used cars. You must be a credit union member to obtain these loans. Rates vary based on credit scores, income, down payment and ability to repay. Setting up financing prior to vehicle shopping saves time and money, offering a financing price range in advance, better bargaining power for the vehicle final price and quick processing times.
Loan for Vehicles through Banks, Online and Car Financing Services
Banks and other financial institutions offering loans for vehicles also offer services for per-arranging financing. Since you probably maintain a relationship for checking, savings and possibly existing credit these businesses are usually easy to work with. Periodically they offer special financing for certain car financing with low rates. Keep an eye out for special offers and time your purchases accordingly. Many times, these low rates coincide with tax refund season when many people look to make new purchases using tax refunds as down payments.
Other Options for Vehicle Financing
Depending on your credit scores and income you may be forced to seek other financing options. There are many companies offering reasonable financing interest rates for individuals of all credit ratings. This is one reason to know your credit before shopping. Each time your credit report or score are requested a small ding is placed lowering your credit card ever so slightly. Preparing in advance allows you to choose the loan funding you are most likely to qualify. To get your best price and vehicle financing rate know your credit score, determine the type of vehicle you desire and then seek to per-arrange financing before shopping. The more you are prepared, the better interest rates you will receive for vehicles at the best price available.