Financing Your New or Used Car

Change is the one thing that is constant and boy has technology changed!

This is the information age and if you want complete, up-to-date information on anything, including financing your new or used car, then you need to have access to the Internet. Gone are the days of long hours of research at the library, pouring over volumes of books, manuals, newsletters, charts and tables and figures…

Online Financing When Buying a Car

Online financing offers you auto loan rates from RoadLoans.com, DriverLoans.com, Secure.AutoCreditFinders.com, just to name a few. Many online financing concerns offer car loan payment calculator tools (MyAutoLoan.com). Another big advantage to online financing is you're able to arm yourself with everything you need beforehand, like knowing your credit score and if it's less than excellent what steps to take to repair it; interest rates. You can even research car pricing online...know before you go. You can be one step ahead of the game with online financing because you're able to go online and fill out a car loan application and receive your answer usually the same day. It takes away the embarrassment of being turned down. Online financing is fast and easy!

How to Obtain Financing When Buying a Car

The best approach for obtaining financing for your new or used car is to shop around and compare financing rates. Interest rates vary from banks, dealerships and other lending institutions; so you (the buyer) must beware. Some lenders (SearchBargain.com) offer a discount off the current quoted rate on fixed rate option if you agree to set up automatic payments from your account.

Other Sources of Financing Your New or Used Car

Credit unions are another source of financing. Many people who work for organizations that have credit unions are usually encouraged to use them. Anybody is eligible to join some kind of credit union. Credit unions are user friendly; easier to deal with than car dealers and will lend more money at a better rate.

Credit Ratings: How It Can Affect Interest Rates

If you don't have an excellent credit rating and you don't have a bad credit rating -- you fit the category of average credit. If you fall in the bad credit category, the interest rates for loans can be as much as 60% higher. If you fit the bad credit category, then you may have to pay up a higher rate of interest -- up to four times higher.

Don't be fooled when you see 0% interest for new cars. This lures many a hopeful persons who are seeking financing. What is not advertised is that you must have excellent credit. This low interest rate is advertised at dealerships. Usually it's because the manufacturer is subsidizing the APR. Only 7% of new car sales in 2003 took advantage of these lower rates, according to J.D.Power.

If you think your bad credit score won't affect your car loan approval and APR, think again. You'll pay an interest rate of up to 23%. Banks most often flatly reject your application if you have a low FICO score; they'll just put you in a bad credit auto loan.

Arm yourself with information; the kind of quick and easy information that can help you get the financing for your new or used car that you deserve. Everything you always wanted to know and a lot of things you don't know, can be researched, learned and used to your benefit in helping you get financed.