If you are planning to buy a new car you will either finance at the dealer or else resort to the local bank or credit union. To get the Lowest auto loan, it is advisable to do some research to get the best rates and pay low monthly installments. Financing of new cars are done for around 70% of all the new car purchases. To help you in getting the best rates for your auto loan, some Car Loan Tips are given below.
First of all know your capacity of your spending for a car before getting the Lowest auto loan . This will help you to know what you can afford. Other wise you may have to pay a hefty car payment later on. Find your monthly budget before buying a car. For this one should subtract all monthly expenses from the net income. The amount that is found is the money meant for your expenses like car loan payment. Do include licensing, registration and other expenses along with down payment and monthly payments. A rough estimate is 20 percent of the net income could be used for car payment.
Spend time sorting through the details about buying a car. Know which car you should buy, from whom to buy, the process to buy etc. The more you know the details, the more you save at the end. You can check the Internet and newspapers, the credit unions local banks and contact car details to do your car research. The different types of rates and offer made could be compared and a suitable decision found to know the Lowest auto loan.
Know the different interest rates offered by the car dealers to get the Lowest auto loan. The lower the interest rate, the lower one has to pay in the long run. There are car dealers who offer you with lower down payments, but make up their loss by making you pay more at the end.
Then there is the incentive from the factory to the dealer. Here, the car dealer gets a certain percentage of the price of the car from the manufacturer. That means, even if you buy the car from the dealer at the invoice rate, the dealer still is making a profit out of the deal. You can find the manufacturers incentive percentage which is public information.
Also there are rebates from the manufacturers. These rebates are offered to sale slow-selling cars or decrease the inventory. To achieve these, the manufacturer either offers a cash rebate and also a low rate of financing to the buyer or one of the two options.
Now you are aware of the different types of rates available for the Lowest auto loan and the type of car that you want, the amount of money you can spend and the incentives that you will get, you are in a position to meet the car dealerships.
Remember though, that car dealers are professionals dealing with novices like you daily. They are not going to help you out in saving money. So it lies with you to know all about these Lowest auto loan. Do remember, that you are the buyer who can walk out of the office if not satisfied. So be relaxed and go for a deal.