Buying a car involves some planning. You have to determine what should be the loan amount you should take. This is better achieved by planning how much installment you can afford per month. Using this as the base, you can use the loan counselors available at the online money lenders or the FREE loan calculators. This helps you research the different amounts on different repayment tenures as well as the interest rates that apply. Auto loan rates are also available online so you need not run across the town approaching different lenders.The rates vary based on the type of loan you are availing. It also depends on the repayment tenure. The auto loans can be availed for both used and new cars. The rates vary for both. As the car you purchase under loan is owned by the money lender, you get better rates on the new cars. For refinance also, the rates vary from lender to lender. It is better to do some research on the internet to find the best deal.
Auto loan rates also vary for different car dealers. Some money lenders have car dealers as their associates. If you are buying a car from one of their associates, you may get some rebate on the rates. For cars that you intend to buy from outside, you may have to pay a bit higher rates.
Rates also depend upon the type of credit you carry. If you have bad credit, you may have to pay extra rates towards the loans. The rates also vary locally. For example, on a new car loan for 48 months, the rates applicable would be somewhere between 5 to 8 per cent. For old car, the auto loan rates would be between 6 to 10 per cent. This is just an example. The loan rates, as said earlier, depend upon a number of factors: type of car (used or new), the tenure of loan, the region you are in, and the type of credit you are holding.
Carney Alden is a Masters in Accounting and Financial Management from
