GOBankingRates

All you need to Know About Car Loans

You have too much to worry about to be bogged down by car loans that are designed to make a profit at your expense. While auto financing is an unavoidable reality for some, searching for the best car loan rates can keep your finances balanced throughout the year.
When borrowers of new or used car loans finance a vehicle from a lender, the financial institution considers the car collateral. The car is used as security, in the event that the borrower defaults on the loan.

Used cars are more likely to wear down and become inoperable due to age, condition and maintenance issues, which is why some lender increase the range of used car auto loan rates to protect themselves from this potential loss.

On the other hand, newer vehicles -- while still facing an immediate depreciation just driving it off the dealership lot -- does not pose as great of a loss, should the borrower be unable to make good on repaying their auto loans. There are several different types of car loans: loans for lease, pre-approved, or refinance. GOBankingRates brings you the facts you need to find the right loan for your car.
There are a number of factors that contribute to the car loan rates you'll be offered by a lender.
  • FICO Score: A person's FICO score is one of the most influential guides that lenders use to determine whether borrowers are risky to lend money to.
  • Auto Loan Term: Another way lenders protect themselves and ensure that they get their money back on time and in less time, is to provide lower car loan rates for shorter car loan terms and slightly higher rates for longer terms.
  • Vehicle Type: As shared above, the age of your vehicle can play an important role in what rate you're offered.
  • Down Payment: Having an adequate down payment can help do a number of things like lower the total amount you'll need to finance , and by directly affecting the auto financing interest rate, even with dealer financing.

Best Car Loans Rates

Find Car Loan Rates near me

Most Read Car Loans Articles

Credit Union 1 Auto Loan Rates Today at 1.89% APR

This APR stays fixed, saving you money.

Read More »

FAA Credit Union Auto Loan Interest Rates Today at 1.99% APR

Between gas, insurance rates, maintenance and the unexpected, owning a car means anticipating several month-to-month expenses. Choosing from one of FAA Credit Union‘s car loans can help offset these revolving costs, build credit and keep one’s personal budget balanced. Which loan should you select? For credit union members who want a low interest rate with...

Read More »

MONEY FCU Offers Auto Loans as Low as 1.49% APR

MONEY FCU will offer you a low rate that fits your budget.

Read More »

PostCity Financial Credit Union New Auto Loan Interest Rates Today at 2.99% APR

This deal is now available to all Californians.

Read More »

5 Ways Women Can Avoid Getting Ripped Off at the Car Dealership

Don't let stereotypes cost you.

Read More »

Camino Federal Credit Union Offering Auto Loan Rates as Low as 1.99% APR on 2015 Models

Get affordable financing in Montebello for new and used vehicles.

Read More »

Detroit Metropolitan Credit Union Car Loan Rates Today at 1.99% APR

One of the most important aspects of buying a car is determining how to finance it — and how to fit it into a new vehicle owner’s budget. Don’t make the mistake of settling for a higher interest rate and falling behind on monthly payments. Car loans with longer terms often come with lower interest...

Read More »