CAR LOAN RATES » Auto Loan News

Despite all the brown bag lunches and coupon clipping, there are some necessary expenses that do not seem to be flexible at all, like high auto loan rates. Consumers are actively seeking ways to reduce their household budgets to more easily manage the economic downturn hitting them from all angles.

For most people, having their own means of transportation is a necessity, and for many, this is one of the most expensive things you will ever own. The amount that individuals are charged for auto loans can differ greatly from person to person, and the biggest factor contributing to your high auto loan rate is your credit score.

Before agreeing to loan anyone money, lenders need to gauge how risky a business proposal will be and checking your credit score as part of the application process is the route they generally follow. FICO (Fair Isaac Corporation) as developed an intricate mathematical equation based on several factors regarding how you use your credit. The result is a score ranging from 300-850, and like the SAT's, the higher the score the better off you are.

Because of the recent state of the economy and the credit crunch, the best auto loan rates are only given to those with outstanding credit generally at 700 or higher. The lower your credit rating, the more you need to pay to borrow money as the lender will consider you a higher risk. Ultimately, they want to get as much money as possible and if you have a lower credit score, the theory is you may ultimately default on the loan so they want to get as much from you before that happens.

Shopping for a new car can be an exhilarating experience! There is nothing like the promises of a smooth ride, fuel efficiency and new car smell to fully intoxicate the senses of a car-shopper. Aside from the perks of new car ownership, there is the down side of having to pay for the vehicle, as you cannot get something for nothing. One way to make the bitter pill of parting with your money easier to swallow is saving money on your auto loan rates, and there are several strategies you can follow to ensure you get the lowest interest rates available on your car loan.

Before shopping for a large ticket item and applying for any type of line of credit, you should take the time to review your credit history. The simple fact is the higher your FICO rating, the lower interest rates you will be charged to borrow money of any type and this can result in saving hundreds or even thousands of dollars on your auto loan rates. By inspecting your report prior to arranging your car loan, you will have the time to take the steps required to clean up your history and possibly raise your score.

You can also save money on your auto loan rates by securing one prior to entering a dealership. Even those with excellent credit may have difficulty qualifying for the dealer incentives, that is why arming yourself with your own means of cash can relieve some of the pressure associated with car shopping. By researching and securing the lowest car loan rate from the comfort of your own home, you will not be under any pressure to accept the auto loan terms offered directly from the dealer.

Another way to secure independent financing for a car purchase is by tapping into your home's line of credit, courtesy of a HELOC. Instead of using your car as collateral, your actual house will be used. Borrowing against your home's value should not only provide you with lower interest rates than a typical auto loan, but in many cases, the interest paid istax deductible when properly itemized on your taxes.

If despite those options you still want to go with a dealer's promotional incentive, it is important to calculate the offers they have to see which one can save you the most money on your car loan. Car-buyers must crunch the numbers and figure out if taking a rebate incentive or choosing low financing will be more beneficiary to their financial bottom line.

Finally, if after crunching the numbers and researching all your options for a low interest auto loan rate is not financially sound, leasing a car may be a viable option. With leasing, since you are not purchasing the vehicle you are not making payments towards the full purchase price of the car. The payments are typically lower than the monthly payments associated with an auto loan, making this option enticing to many car shoppers.

No matter how many times you wish upon a star, chances are you will never end up with your dream car for free. Your fantasy ride needs to be earned, and those with blemishes on their credit report may find it extremely challenging to secure the financial resources they need to purchase that car they have had their eye on. The good news is, although securing a car loan with bad credit may be challenging, it is not an impossible task as long as...

Anyone living in Southern California need a good auto loan rate for a brand new car? A credit union - Schools First Federal Credit Union - formerly known as Orange County Teachers Federal Credit Union (OCTFCU) has just lowered their auto loan rates to 4.75% APR. This also includes .75% discount for auto transfer payments. This deal is for new cars only - so if you're looking to buy a new car you may be in luck if you meet the...

Read full article: Low Auto Loan Rates at Schools First Federal Credit Union

MSNBC just reported that the quantity of late payments for auto loans has slightly decreased over the first quarter of 2009 as compared with the final quarter in 2008. Consumers should not get too excited by this small amount of good news, as compared to the same period last year auto loan delinquencies are up a total of28%.

Some think that the subtle decrease in delinquent car loans may be a tell-tell sign that the economy is finally...

With the overstock of car inventories, government tax incentives and generally low interest rates, the time to buy a new car has never been better. Before jumping off your couch and running to your favorite manufacturer to scoop up some bargains, it is important that you are aware of your consumer rights when it comes to auto loans as it could save you money!

In general, consumers with good credit should expect their auto loan rates to be...

Before you set foot into a dealer, you should check your credit score, take any steps to correct it and then comparison shop for the best auto loan rates available. By taking the time to explore such websites as Go Banking Rates, you can easily find and then secure an auto loan for your purchase.

Consumer advocates and financial experts both advise that consumers who are in the process of car shopping need to treat the act of buying a car and...

With auto industry powerhouse GM facing bankruptcy,car owners are shaking in fear about the vehicles they own. It's pretty normal tofeel some concern whenone of the Big 3 hits rock bottom; however, experts are saying there's nothing to worry about just yet.

Why Are People Feeling Afraid?
The word "bankruptcy"immediately instills fear in people because it represents financial failure and an inability to function as once before. However, when...

Despite what promises you may have heard about how closing dealerships will not affect you, dealership service will suffer. 1,124 GM dealerships will be closing, along with 789 Chrysler dealerships. Although they are fighting to stay open, many will in fact be closed by next year as a part of each auto maker's restructuring efforts.

Here are the reasons you will be affected by closing dealerships:

• You may need to drive further to get to...

Sometimes, comparing auto loans is more challenging than actually securing them; however, the process doesn't have to be impossible. There are actually some easy ways to go about comparing auto loans, which in turn can make buying a car simple. It's just a matter of making equal comparisons whenever possible. Here are a few examples:

• Compare Total Up-Front Fees and Charges. When comparing auto loans, dealerships and lending companies can...