Low Interest Car Loan
Searching for a low interest car loan can be frustrating. Banks advertise amazingly low rates, but when you call they calmly tell you that you wouldn’t qualify for the special advertised rate and they offer you ridiculously high rates instead.
Comparison Shopping
If you’re willing to shop around for the different rates available from several different lenders, you’ll have a clear idea of which lenders are offering a truly low interest car loan.
Get Quotes
Call several lenders and ask them for quotes on a low interest car loan. Verbal quotes will help with your comparison shopping, but you should try to get quotes in writing if you can so you’ll have ammunition to use when it’s time to negotiate.
Negotiation
Banks need your business so they can stay in business. If you let your lender know you’ve been shopping around and you know you can get better rates elsewhere, tell them. Then ask if they’re willing to match the low interest car loan rate you’ve found elsewhere. If they refuse, try a different lender until you find one that will negotiate. Don’t accept their first offer. Take a quote in writing and then go back to your original lender and ask if they’ll go even lower again.
You’d be surprised how willing some banks are to negotiate in order to win your business.
Equity
When the bank’s assessor checks out how much you’re borrowing compared to the cost of the car, the amount they quote you on your rate can be affected. This is because they’re using the car you want to buy as collateral. By trading in an old car or by putting down even a small deposit on the purchase price, you can begin to negotiate for a low interest car loan rate instead of putting up with the higher rates they try to offer you.
Banks tend to offer the best deals and low interest car loans to customers with higher credit scores. If you know you’re going to be borrowing money to buy a new car or upgrade your old car, take a little time to work on improving your credit score as far as you can. By catching up any overdue payments you have outstanding can help to improve your score immediately.
Call your creditors and make payment arrangements with each of them. Work out your minimum repayment amounts and round up your payment to the nearest dollar. This tiny amount will only be a few cents a month, but your bank will be forced to report it as an extra repayment, which really helps your credit score.
I thought you may be interested in reading some of the bullet points contained in this post about car refinancing and personal car loan
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