There are rules about bank car loans. This is the most important thing you'll learn from reading this article. This means that the interest rate on the car loan can't be more than a certain amount per year. This doesn't mean that banks will give you the full value of the loan, whether it's for a new or used car. Banks keep actuarial tables and books that are very fair and accurate. These show the fair value of both new and used cars. In the best cases, they find the best price on the market and offer you financing for about 66 percent of the car's cost to you, the buyer. Their loan business is great because they have the best information in the car business. They have the "blue books" that show how much each model of car made in the world is worth. They also keep in close touch with all the car dealers in town, in the state, and sometimes even in other states when Interstate commerce laws let them.
So, your local bank is the best place to find out about the best deals on both new and used cars. If you have a good credit report, you won't have to worry about getting a good deal. This makes sure that your bank will give you a good rating, which can lead to things like lower interest rates and longer loan terms. Now that I've told you the good news, I'll tell you the bad news about the car loan myth.
There are many places to buy used cars in the city and state. In this town, there are used car lots on many of the streets. They look nice, and the prices don't seem too high or too low. Before financing a used car from a lot they don't know anything about, the buyer should be very careful. First, a lot of places that sell used cars have interest rates that are way too high. They can do this because, in our state, the state legislature has decided that used car dealers take a huge risk when they lend money to someone with bad credit to buy a car from their stock. This is the "usury allowance" law, which has made it legal for loan sharks and bad car deals to do well all over America. There are similar programmes in other states where greed and avarice live. You find a car that is perfect for you.
Your credit might not be as good as you'd like, so the bank might not be able to help as much as you'd like. The "Triple Nasty Car Dealership" lets you buy the car of your dreams with financing, free tags, and no sales tax. Only it quickly turns into a nightmare if you choose a car that you can't really afford. The interest rates on your car loan are much higher than what you pay for your licence plate or sales tax. In fact, you might have to pay more than $1,000 a month for a car that is five years old. My young friend really needed a car, so she bought a used one that she had to pay for with a weekly car payment. The car dealership said that her credit risk called for a 258 percent loan rate. The final point is that you should get a car loan from a well-known bank with a rate you can handle. If you can't get a loan from a bank or a lending group, look closely at how the dealership lets you pay back the loan. If they are too high or too expensive, don't sign the loan papers and just leave.
