"A Guide to Comparing Used Car Loan Rates"
If you want to get the perfect car loan that fits your budget,
it is foolhardy to just sign-up when you have not determined all
of your available options. Before doing so, you might to
consider first the figures that you will be working with.
Once you have determined the model of the car that you want,
where you will be getting the loan from, and your monthly
allowance for the used car loan payment, you may proceed with
signing up. Then you will be on your way to owning the vehicle
that you want.
There are a lot of web sites online which offer auto loan rate
calculators.
These rates vary by state and city. There are also online
lenders who offer a cheaper rate, as compared to getting car
loans via banks who - more often than not - deny your loan
application, especially for used vehicles.
Research online and visit the used car dealers in your area.
Collect the price quotes first to determine the current rates
for the used cars available in the market.
You can also ask around for the rates. You are bound to get more
results by word of mouth, especially if you know car enthusiasts.
Take the following as an example of the current used car rates:
In California, three lenders who offer used car loans are the
Bank of America, Capital One Auto Finance and Wells Fargo Bank.
For a used car loan, the Bank of America offers 20% down payment
and an 11.2% rate. You would add to this a $75 fee and a .25%
discount with auto debit.
The second lender, which is Capital One Auto Finance, offers a
6.25 % rate and a 20% down payment. There are no application
fees and prepayment penalties.
Wells Fargo Bank offers an 8.88% rate and a 20% down, a $50
application fee and a .25% discount with auto debit.
At the end of the day, just compare these three rates and
determine which offer would fit your budget.
Also consider the distance, mileage and the final asking price.
One more thing that you should consider when comparing rates is
the number of months for you to make the payments.
There are several options. Some lenders offer a 36 month used
car loan. For higher asking prices, longer payment terms are
available.
For a 36-month used car loan, for example, the rate offered is
8.31%. This rate increases as the number of months increase.
After researching and looking through all of your options,
choose the lowest rate that you can get and remember not to
overspend when you have already reached a certain target budget.
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