To get the best used car loan that fits your budget, comparing used car loan rates is needed. It is foolhardy to just sign-up when you have not determined all of your available options.
Once you have determined the model of the car that you want, where you will be getting the loan from, and your monthly allowance for the used car loan payment, you may proceed with signing up. Then you will be on your way to owning the vehicle that you want with the best possible financial considerations.
You can find many online websites that offer auto loan rate calculators.
The rates vary by state and city. There are also online lenders who offer a cheaper rate, as compared to getting car loans through banks who - more often than not - deny your loan application, especially for used vehicles.
Research online and visit the used car dealers in your area. First collect the price quotes to determine the current rates for the used cars available in the market. You can also ask around for the rates. You are bound to get more results by word of mouth, especially if you know car enthusiasts.
Take the following as an example of the current used car rates:
In California, three lenders who offer used car loans are the Bank of America, Capital One Auto Finance and Wells Fargo Bank.
For a used car loan, the Bank of America offers 20% down payment and an 11.2% rate. You would add to this a $75 fee and a .25% discount with auto debit.
The second lender, which is Capital One Auto Finance, offers a 6.25 % rate and a 20% down payment. There are no application fees and prepayment penalties.
Wells Fargo Bank offers an 8.88% rate and a 20% down, a $50 application fee and a .25% discount with auto debit.
At the end of the day, just compare these three rates and determine which offer would fit your budget. Also consider the distance, mileage and the final asking price.
One more thing that you should consider when comparing rates is the number of months for you to make the payments.
There are several options. Some lenders offer a 36 month used car loan. For higher asking prices, longer payment terms are available.
For a 36-month used car loan, for example, the rate offered is 8.31%. This rate increases as the number of months increase.
After researching and looking through all of your options and comparing all the used car loan rates, choose the lowest rate that you can get and remember not to overspend when you have already reached a certain target budget.
Published by Reina Raine on November 22, 2007 06:02 PM
