Getting The Best Interest Rates For Auto Finance

When you are looking to buy a car on finance, it is important for you to shop around and get the best possible interest rate as it can really save you a lot of money you will end up paying eventually. Let us take a look at few things to keep in mind for getting the best deal out of auto finance.

Shop around. There is no doubt that getting the auto finance done from the dealer is the most convenient method, but it often is the most expensive method as well. Shop around in banks and credit institutions and see what quotes they offer, and you’ll be surprised to see the difference in the total amount that you will be paying up.

Buy a new car rather than a used one.  In auto finance, a new car always fetches better interest rates than an old car. If you’re buying a used car, the older it is, usually the more is the interest charged.

If possible, get your loan co-signed by someone with a good credit score. Sometimes, it fetches a better interest rate.

Check with your home equity loan and do the math to compare it with the quotes you got. Sometimes, you get a better deal here than the others.

Larger down payment and shorter tenure usually converts to better interest rates. So if you have the money, make a larger down payment, and if you can afford a bigger monthly payment, opt for a shorter tenure for the loan.

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