Best Auto Loan Rates at AutoLoansDirectory.net

The American automobile industry is facing hard times. It needs to move the vehicles from the dealers’ showrooms on to the road if it has to survive and so the industry is removing all props to sell the vehicles. The automobile manufacturers and dealers have not only lowered prices and are giving freebees and incentives on the purchases. They are also arranging car finance at low interest rates in a determined manner. Lending companies and banks are pushing car finance like never before at unbelievable low rates. In such a situation and in present difficult times, one may well ask, is it wise to purchase a car and is it also wise to take a car loan for the purchase. If it is your first car that you are purchasing or if you are upgrading your old vehicle to a new improved version then now is the right time to buy. Also few of us have the capacity to pay in one stretch the full value of car; hence it becomes necessary to look at car finance schemes very seriously. The car financing companies will provide all the details of the schemes available, but it is prudent to sit down and analyze the many aspects of it. The car loans offered differ from one individual to another. The car loan rates depends on several factors such as the value of the car, the period of loan, the down payment made at the time of purchase, and most importantly an individual’s credit rating. The loan rate is lower for a new car than for the equivalent amount of loan on a used car. The loan rate is higher for a longer term say sixty monthly installments payment scheme than for an equivalent loan taken under a thirty-six monthly installments scheme. A down payment of 20% of the value of the car will get you better and lower loan rate than say a lower down payment of five percent or nil deposit. The most important factor that decides the car loan rate is the credit rating of an individual. The decision to sanction a loan is also based on whether you can pay for the car and whether you are willing to pay. It is better to obtain a credit rating from an independent credit rating agency (CRA). A good credit rating without any disparities will make you eligible for the most favorable lower loan rate or even zero interest rate financing scheme. Credit ratings are graded as Great, Good, Average, Fair or Bad and the car loan rate is based on this rating. Bad credit does not make one ineligible for car loans. It only makes one eligible for a car loan at a very high rate of interest say anywhere between thirteen percent to twenty percent rate of interest. It is very useful to calculate the total outgoings on the loan by multiplying the monthly installments payable on the loan with the number of installments. A studied decision on your car loan will allow you to pay the monthly installments for a few years comfortably and yet be able to drive around with pride.