How to Get the Best Car Loan Interest Rates
After deciding on your dream car, there’s the matter of paying for it. While some people could pay for it in cash, most take out an auto loan and pay that off each month.
There are different factors to consider when taking out a loan, which includes the interest rate. The rate can vary, but you’ll want to make sure you get the one that’s ideal for you.
In this informative guide, you’ll learn exactly how to get the best car loan interest rates. Check out the tips below, and contact us at FreeVehicleValues.com if you have any questions.
1. Know Your Credit History.
It’s important to know your credit history before you apply for an auto loan. You can get a free credit score report from Equifax, Experian, or TransUnion.
The higher your credit score, the lower the interest rate can be. However, there are ways that you can boost your current score. You’ll want to pay off credit cards and other debts as soon as you can. You’ll also want to pay all your bills on time.
Furthermore, you’ll want to keep records of old debt on your report. While late or missed payments can lower your score, you won’t want to get those removed. In fact, after you pay off an account, you’ll want that history to stay there. The longer your history is—especially of good debt—the better it is for your credit score.
2. Keep the Length of a Loan as Short as Possible.
When it comes to car loans, the longer the term is, the less you’d pay per month. Having lower monthly payments may seem ideal; however, you may end up paying more in the long run.
The average length of a car loan is 60 months. Any longer than that, and the interest rate can go up. So, if you took out a 72- or 84-month auto loan, you could be paying a significant amount of interest. In the end, you’d be paying more overall than if you stuck to a shorter loan term.
3. Consider Buying a New Automobile.
In general, you most likely will get a better interest rate on a new car vs. a used car. One reason is that new cars can qualify for zero-percent financing (though some certified pre-owned vehicles can, as well).
Another reason is that it’s easier to predict a new car’s resale value. This is more appealing to lenders, and they’ll therefore offer a better interest rate.
Whether you buy new or used, though, you’ll want to make sure to get pre-approved for a loan. This way, you can get as many options as possible for a good interest rate.
Learn More About Car Loan Interest Rates
These are just some of the many ways to get the best car loan interest rates. To get more tips, contact us at FreeVehicleValues.com. We’ll also buy your current ride, so you can use that money to put toward a new one. Then, you can get an auto loan with the interest rate that works for you.
So, don’t wait. Get your car’s value today!