Another effective tip for getting the best auto loans with lower interest rates is to save up your money to make a larger down payment. The larger the down payment you make on your car loan, the better in most cases. A higher percentage down payment will allow you to secure lower monthly payments on your auto loan.
Unlike a personal loan, you will usually be able to create a car loan without making a down payment. However, the lowest car loan rates will require you to make a down payment of around 20 percent of the total cost of a new car. For the best used car loan rates, try to make a down payment of at least 10 percent.
In order to decide which cars fall within your budget, you should first select a target amount that you are willing to spend.
Then, see which vehicle makes and models are affordable for that budget. This will help you narrow down your options until you find the car you want to buy.
Financing Tip: A higher payment can help you qualify for loans that may not have been approved for otherwise with your current credit score.
Generally, paying the biggest down payment you can afford can help you secure the best car loan rates today.
Note: In addition to the cost of the vehicle you will also need to pay sales tax and fees for the purchase, so be sure to budget enough money for these payments.
Continue reading to learn how you can determine the best place to get a car loan by shopping around.