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 somewhere in the 6% range. As always, the higher your credit score, the lower the interest rate you will be entitled to. The rates not only fluctuate because of your history, but because of the state of the vehicle purchase, the size of the loan and the overall terms of the loan agreement. Depending on who you are and what you do, there may be special circumstance you need to be aware of to get the most affordable auto loan out there.
African Americans need to be especially cautious when shopping for an auto loan. According to the Consumer Federation of America (CFA), that demographic pays an average of 15% interest on a car loan. It is an unfortunate and unfair reality, but those who are fearful of the unjust treatment should shop for their auto loans online with sites like Go Banking Rates as opposed to shopping at the dealer. Online you will solely be judged on your merit and this tip applies to anyone who is fearful of getting charged too much unnecessarily.
Military personal may be entitled to lower interest rates on their car loans because of their enlistment. If you are a service person, it is important to check for military loans, as they will probably offer the best deals out there. Plus, military loans are a bit more flexible as far as not requiring a fixed address or allowing a longer repayment schedule as they understand the special needs of that demographic.
Recent college graduates may also be entitled to deals and incentives that require special attention. Many car manufacturers have special promotions specially targeting new entrants to the work force. With all the student loans you probably have amassed any amount of cash-back, low interest or other type of deal can certainly help out in the long run.