How To Get Lower Rates on Automobile Financing | Car Insurance
With the economy at its foot, automakers have fewer sales than last year and are likely to cut down the prices and car finance rates. Hence, this can be the time to get the best bargains on your car buying and financing deals.
One can expect to get 6.2%, on average, according to sources on automobile loans in the US. You can get a better deal at some online lenders, where interest rates are as low as 5%. However, rates vary upon the state, credit history, loan amount, and type of car (new or used).
Get Lower Rates on Automobile Financing
Many people do not know about some of the rights where they can get low rates on their car financing and fall prey to the higher rate offered by the dealership. Thus it becomes essential to know some rights before financing your vehicle.
If you are purchasing a fuel-efficient car, then you may expect to get rebates and discounted rates on car buying and financing, respectively, as the federal government encourages people to buy fuel-efficient cars by introducing the eco auto Rebate Program that offers a $1,000 to $2,000 rebate on the purchase or lease of fuel-efficient vehicles.
There are programs such as Fuel Smart Auto Loan, also known as go green car loans coming up to support an eco-friendly approach to car financing. You have to buy a hybrid vehicle or an environment-friendly automobile and receive a .30% rate discount on regular new or used car loan rates.
Minority – Be aware:
If you are a minority in the market for a car loan in any US state, you must know your rights.
According to the CFA (Consumer Federation of America) report analysis, African Americans paid auto loan rates of at least 15 percent. For new car loans, 6 percent of African Americans paid more than 15 percent compared to 1.7 percent for whites and 1.8 percent for Hispanics. While on used car loans, 27 percent of black and 18.5 percent of Hispanic borrowers paid more than 15 percent compared with 9.2 percent of white. This advantage is taken more by the dealership as online lenders cannot see your racial/ethnic background.
Therefore, if you are a minority, black, Hispanic, or from another ethnic background and going for car buying through a dealership, you need to check around for interest rates offered.
Benefits for students on vehicle purchase:
If you are a student with a diploma or a recent graduate, you can have rebates and discount rates on your vehicle purchase. Recently, carmakers, including Hyundai, Ford, Mazda, and GM, have created discount programs, whereby they all offer rebates or discounts specifically for college students.
Similarly, financing a new or used car being a student can avail you cash rebates, low-interest rates, and flexible paying terms from a car dealership, online lenders, or financial institutions and banks. In addition to this, many online lenders finance cars for college students and provide them loans without credit checks that can be used to purchase a vehicle from either a dealer or a private seller.
Military car loans to benefit military personnel:
For the military personnel who are trying to get finance for their car. Military car loans can be advantageous to obtain lower interest rates as the lenders subsidize these loans. Military auto loans do not require a fixed residence or a steady job, while one can also qualify for this loan even if he/she is just enlisted in the forces.
Besides lower interest rates, military auto loans feature more flexible repayment in terms of the loan amount, loan period, etc. Under the same financial circumstances, military personnel can get higher loan amounts on military auto loans than regular vehicle loans with lower interest rates. Thus military personnel should take advantage of the privilege open to them before applying for an auto loan.
Above are some of the options wherein you can get the best out of car financing, making it necessary for borrowers themselves inquire before going for it. Hence, that can get you to lower monthly payments while getting you your dream vehicle.
