The Difference in Old and New Auto Loans

We are living in an unprecedented time when the rates for purchased automobiles are at all-time lows. In fact, for new automobiles, many offers are available with zero percent interest rates. While the interest rates on notes for some used cars for clients with poor credit can run to a staggering 18 percent, most people today are benefiting from these historic lower rates.

The key to finding the best rates is to start a process of shopping around. There are many online quote generators that use basic information to find the most favorable rates. Once you enter the information requested, you can get comparable rates from a number of lenders. These will take into consideration your individual situation and any special offers that may be in the marketplace from dealers and manufacturers.

In such a situation, it is common to get approval for your loan ahead of time so you know what kind of car you can afford and what the payments will be. Once you are approved, you simply print out the approval and then go shopping for your new car.

It is actually a very similar process for seeking financing for a used car. Before you ever visit the dealer, you can use the online quote generator to enter your personal data and you will also quickly get approved for a certain type loan at a rate commensurate with your credit standing.

Before you actually start the process of searching for financing, it is often helpful to do a bit of car research to determine the type of automobile you are seeking. The type and age of car will have a bearing on the amount of loan that you seek and, accordingly, the note you will have to pay. Newer cars, even used ones, carry lower interest rates because there is less risk to the lender.

There is now a great deal of manufacturer's data online that helps to determine the type and model of car you want to purchase. This information is also handy to help establish general negotiating ranges when you go into see a dealer. Knowledge of the car's sales record and attributes can go a long way towards saving some dollars when you go in to purchase a car. Interest rates are only a part of the total cost of purchasing an automobile and some astute online searching today can keep those interest rates to a bare minimum. If you are searching for a new or used car, be sure to use an online calculator to get a solid idea of the rates that are currently being charged for the vehicle you desire.