You can find the best car loan rates if you look for them. Depending on your credit history, you may find that the best auto lender for you is either a prime or a sub prime lender. The best way to find out is to get free loan quotes online. This will help you narrow down your options.
What Makes Prime and Sub-Prime Lenders Different
The kinds of loans that prime and sub prime lenders offer are different. People with credit scores of at least 650 can get an A loan from a prime lender. Sub prime lenders provide loans to everyone else. Some financing companies, though, offer both types of loans.
Since lenders are taking on more risk with subprime loans, the interest rates and fees are higher. Most types of loans will only cost a couple of points more from fair lenders.
Who has the best prices?
You have to compare prices yourself to find out who has the best ones. Depending on your credit score, you might be surprised to find out who can give you the best deal.
Even though low rates are important, you should also think about fees. Luckily, the government made it easy to compare loans by making lenders show the APR of every loan. The APR takes into account both rates and closing costs.
Find a good lender.
The best place to start looking for a car loan is online, not at the dealership. You can't be sure you're getting the best deal because the salespeople have too many incentives.
Start with a site that helps people find car loans from many different lenders. There, you can quickly find free quotes. Then contact other lenders again.
And don't let a lender look at your credit report unless you're pretty sure you want to take them up on their offer. If you don't, multiple credit checks will hurt your score and make it harder for you to get a loan.
There is no quick way to find the best auto loan rates, but online sites make the process faster. Spending a few hours getting financing for your car will save you money and make the process of buying a car easier.
