Low Interest Auto Loans: Scoring the Best Rates

Low interest auto loans are in your reach, but you need to be a smart borrower. Several factors can influence the interest rate including the source of the low interest loan you choose and your credit history.

Choosing the Right Lending Source

Thinking out of the box can pay off when you are seeking a low interest auto loan. The traditional route for auto loans would be to begin with the dealer where you are buying your car. But be aware even a 0% loan might not be the best loan. There often are fees or charges built into the loan that make the cost higher to you.

Banks and credit unions are strongly competitive for new or used car financing, and this is where relationships can pay off for you. If you have a history of being a good customer, you are in a stronger position to get a low interest auto loan.

Consider a home equity loan as well. Often the best rates are available here and that loan, with your lenders knowledge, can go to a new or used car purchase.

Know Your Credit Score

Your lender will be looking at your credit score and history and you should be to. Improve it whenever you can and use a good score to negotiate for good rates.

Shop, Shop, Shop

Finally, the internet has opened hundreds of avenues for you to compare interest rates online to make sure you are scoring the best low interest auto loan.

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