Low Interest Auto Loans


bmw-918407_1920Good morning everyone. We all need a new vehicle from time to time. Many people get their vehicles from the dealership. If you decide to go that route, it’s a chance that you probably won’t be paying cash for it. Many of us are not at that level. That means that you will need to get a loan for the car. In order, to get the most car for your monthly payment, you want to make sure that you find the best low-interest auto loans possible. The less you pay in the interest, the more car you can afford to but while still keeping your monthly payment at a reasonable level. The interest rates that will be charged on car loans will vary from day to day to day, depending on what determines but even with fluctuation there are still factors that will determine what rate you will pay.

Credit History

Credit history will play an enormous part in determining what interest rate you will have to pay. Someone with an excellent credit score may get a rate of around 5%, but someone with a poor or average score may end up paying 15% or more on their loan. That’s a big difference. That’s why we have to make sure that our credit history is good. Paying your bills on time goes a long way. Paying 15% instead of 5% can really add a lot to the overall amount that you pay for the car as well as your monthly payment. You should do whatever it takes to improve your credit score before you go shopping. Sometimes it can be something as simple as correcting some mistakes on your credit report. Other times it will just take time. You will need to reestablish good credit by paying all of your bills on time. If you tend to forget your bill due dates add them to a calendar or put the dates in your phone. You need that credit history to be good.


If you don’t have the best credit, you still may be able to get a decent car loan. You can do this by putting a nice deposit down on the car. That happens for two reasons.

The first reason is that it shows the lender that you do have assets and you are in a better financial position than you were when the problems arose on your credit.

The second reason is that it means your lender won’t be on the hook for nearly as much money so even if you do default, they won’t take much of a hit. Think of it like this: you’re trying to purchase a $25,000 car. If you don’t have any money down, the bank is on the hook for the whole $25,000. If you can put down $7000, they are only on the hook for $18,000. $18,000 is still a lot of money, but it’s less than you’d have to pay without putting anything down. If they have to repossess the car and sell it in an auction, they will have a much better chance getting their money back.

I haven’t had a car note in years. I’ve been debating on getting another car within the next six months. It’s time. I’m not sure I want to get a car loan, though. My credit is much better than it was the last time that I had one. My income is better as well, meaning that I will be able to pay it off faster.

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