Tips on Getting the Best Car Loan Deals for 2016

With the many auto loans to choose from, driving your dream car is now achievable for potential car owners. However, it is still important to know the current rates for auto loans. Fortunately, interest rates are in the low this year, according to chief analyst for Bankrate.com, Greg McBride.

In 2015, average rates for new cars were at 4.3 percent while for the pre-owned ones, it played at 5%. This year, the analyst predicts that rates will be below 4% for both types of cars. That said, SUV owners need not worry on having to downsize their vehicles this year.

Tips on Saving for Car Loans

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  1. Maintain good credit standing.

One of the most effective ways to save on a car loan is to ensure you have a high credit score rating. If you are planning to apply for a car loan, get a copy of your credit history to check if there are discrepancies in your credit report. And if you have delinquent credit card accounts, see to it that you keep them current.

  1. Shop for low interest rates.

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Have enough time to shop around for several auto loan providers and compare interest rates offered so you can choose the best deal for you. Don’t settle with the first company you visit regardless if it seems to offer a great deal. Remember that most of these companies have their own deals and it is best to know your options. By doing so, you will have more money to pay for monthly car payments and for a lower interest rate you can save more over the years.

  1. Decide if a bank loan is better.

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Different loan providers offer a variety of deals like no down payment or lower monthly rates. Compute how much you will spend for the duration of the loan and compare if it is cheaper than getting your loan from the bank.

By being savvy on choosing the best car loan for you, getting the best deal is possible. Start by understanding the current interest car loan rates to know what direction you need to take.

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