If you are looking to buy a new or used car and want to finance it with the very cheapest auto loan possible (by that I mean the very least expensive) then here are some ways to go about getting a loan at the lowest cost possible.
First, you need to be sure you understand your credit. If you have excellent credit there will be a whole set of rates available to that, at the same time arenít available to someone with poor credit. Getting the best rate means getting the lowest available rate for your type of credit. You donít want to pay any higher rate than you have to.
A third important point is to try and keep you loan term as short as possible. Generally rates are much better for shorter periods of time. If you can afford the monthly payments over 36 months, then take this option instead of 60 or 72 months. While it will appear that the monthly payment is somewhat less in the longer term loans, you will find the interest rate is actually higher and the overall cost of the car considerably greater.
Also donít forget to shop, shop and shop a little more! Be thorough in looking at whatís available. This includes using the internet in your search. Itís a great resource and many very competitive lenders and dealers offer a wide range of offers on their sites. Especially if you have credit issues, the internet is a trove of applicable offers.
What may sound obvious but is actually overlooked by many buyers is to take the time and read your financing agreement carefully. Be sure it says what you were told and what you think you are getting. If it doesnít or you donít understand something, donít be hesitant to ask and get the agreement to reflect your understanding.
Taking each of these points into consideration and being diligent in following up on each of them, you will insure that you have the best possible interest rate on your next carís financing. You will have covered all the bases and done the work needed to know the facts. You can buy your next car confident that you have a good deal!