The Secret To Getting Low Auto Loan Quotes
Doug Smith

Defined Tag: Auto Loan Quotes.

Comparison shopping is vital to getting low auto loan quotes. When looking for a new car, you will probably visit several dealerships to find a vehicle you like. Once you settle on a make and model of car to buy, you will then revisit the auto dealers to see which one has the lowest price on that car. Unless you can pay cash for your new car, you can save lots of money by getting car loan quotes from several different sources.

Loan quotes for new cars can be obtained from your bank, online, and from the dealership itself. Car dealership loan quotes can sometimes have lower interest rates than bank loans, but the reverse can also be true. You just don't know until you have the written automobile loan quotes in your hand. If the car dealership quoted you a car loan, then you can only use that money to buy a car from that dealership. If you have a loan quote from a bank, then you can use that money at any car dealer. A quote is not a contract, so if you don't like the bank's or dealer's terms, you can choose to borrow money for your new car from elsewhere.

There are two main parts to compare on any loan quoted for a new car: the interest rate (APR), and the amount of time you can take to repay the loan. The car price is not a factor at this point, because it is assumed that you have already located the dealer with the lowest-priced car that you want. If you obtain several car loan quotes, you might be able to save anywhere from 3% to 7% of the entire loan principal by choosing the lowest rate.

The other factor to consider is the amount of time you are allowed to repay the car loan. The longer period you can get, the lower your monthly payments will be. Conversely, if you choose a shorter repayment period for your new car loan, the monthly payments will be higher. The total amount of the car loan quoted plus the interest will not change, but you can adjust the monthly payment to match your current income by choosing a repayment period that gives you monthly payments that you can afford.

Consumers with poor or bad credit can get loan quotes for new cars as easily as anyone else. However, the interest rate on those quotes might be higher, because the lender is assuming more risk by lending to a buyer with bad credit. Regardless of credit history, you can usually pay much less for a new car or truck by comparing several auto loan quotes, rather than simply taking the first one offered.

Copyright 2008 by Doug Smith. All Rights Reserved Worldwide. Unauthorized Duplication Prohibited.