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Auto Loan Facts
It is important to consider how much you realistically can pay for the car. This will directly impact the loan rates that are offered. Let's briefly review the situation about current auto loan rates and provide some extra tips on the best places to look for low loan rates.
First off, you should know that there are four main and different kinds of auto loan rates:
- 36 month car loan
- 48 month car loan
- 60 month car loan
- 72 month car loan
Each of them have different loan rates that fluctuate between 6.5% and 14%, sometimes climbing up to 15% or 16%. The actual rate depends on you location and whether you want a new auto loan or a used car loan, but the general rule of thumb is that the lower number of months for the auto loan, the lower the car loan rate. Of course, if you want a used car loan, you should expect slightly higher loan rates than for new cars.
We have learned that, depending on where you apply for your auto loan, you can expect to find lower or higher rates. We won't write about it in-depth, but you can anticipate lower auto loan rates from credit unions and higher - but safer - rates from the auto dealers.
Auto Loan Rates At Different Locations
If you are part of a credit union, you'll be able to opt for larger auto loans with lower auto loan rates. You should check your union and compare the auto rates with your local bank to see which one is better. The other place, auto dealers, can offer you auto loans with a slightly higher loan rate, but are much safer. When we write safer, we mean that the whole loan process is faster and that the approval rates are much higher.
Don't worry if you're not a member of a credit union or if you only find high auto loan rates with auto dealers. There is another kind of auto loan you can apply for called a home equity auto loan. By placing your house as collateral, you'll be securing your auto loan no matter what. Always remember to research for the current auto loan rates until you have nowhere else to look.
Common Questions
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