New car finance rate
Ever since the global economy has become unstable, it is difficult to get a satisfactory new car finance rate. There are some financial institutions that offer competitive rates and also make the whole process easy and hassle-free. In fact, online agencies like Car Money Fast provide a list of financial institutions that would offer a good new car finance rate.
What to look for:
When trying for a new car finance rate, points to be remembered are:
What percentage of loans are approved
Whether you can get an assured loan
How low the rate of interest they are offering is
Whether your credit worthiness is a factor (especially if there is an issue with your credit analysis)
How to get the best deal:
Since finance rates differ from car to car and among financial institutions, the first thing to be done while working on a new car finance rate is to check out all the models of cars that you are interested in. There is a lot of material regarding this that is available online, and careful research will give you all the information you need about the various cars. Then, you will need to research into the financial institutions that you are thinking of approaching in order to get a new car finance rate.
It is also a good idea to get information regarding a new car finance rate from at least 5 banks. Carefully verify and gather your data do not get seduced by attractive advertisements. Compare all the data collected. See if you can get a co-signatory.
Agencies that help:
Agencies such as Auto Finance Centres, have plenty of information on a new car finance rate. They have auto finance calculators, auto finance tips, how you can improve you credit rating (if you have a high credit score, the interest rate is lowered).
Ways of getting a new car finance rate:
Hire-purchase in this option, you use the car, but own it only after the last payment is made. Also, you can sell the car only after the loan is repaid. In case you have opted for a bank loan, since interests rates vary, you will have a wide choice.
Remortgage this is a very economical way of getting a loan. Interest-free finance a new car finance rate minus interest is possible. The catch is that you might have to forgo the discount in such a case.
Personal Contract Purchase in this case, the bank makes the monthly payments for a certain period of time. At the end of that period, you can either pay back the full amount, or give the car back.
Personal loan these are arranged through banks and other financial institutions, so that you can pay cash down to the car dealer.
A new car finance rate is greatly influenced by your credit rating. This is because your credit history and credit score tells the financial institutions about your monetary health, and habits. If you are credit worthy, they are likely to lower the interest rate. Another thing that affects the new car finance rate is the time period of the loan. The shorter the term, the lower will be the rate of interest, even though the monthly instalment might be on the higher side.