CAR ARTICLE

Car loan rates differ greatly, so shop with a specialist website for the best deals

When considering buying a used or new car then you have to get several quotes as car loan rates differ greatly. This is made easy by going online with a specialist motoring website and getting all the quotes on the same page. Comparing is a whole lot easier because the key facts should be provided with the quotes. The key facts are where you can find vital information regarding the quotes such as how much interest will be added, the total cost and any fees.
The choices for the loan will depend on the car you are buying and your credit rating. If you have an excellent credit rating then you will be able to benefit from the cheapest rates of interest possible. However if yours is poor then you might have to consider going for a bad credit car loan. If considering a second hand car then you could consider an unsecured loan. While a brand new top of the range model might mean you have to go for a secured loan.
An unsecured loan can be a good choice if you are able to take advantage of an interest free period. Usually lenders will offer 6 months interest free and if do not need to borrow a large sum of money and are able to repay within the interest free period this is one of the cheapest ways of borrowing. You do have to look for the cheapest car loan rates if you might not be able to pay back the loan fully during the interest free period. The rates are generally higher when the loan reverts to the standard rate.
If you need to borrow a large sum and want to keep the monthly repayments down by spreading them over longer terms then a secured loan might be better. The secured loan means you can borrow a larger sum and spread the cost over several years. This is a good choice if the car is a brand new one from the showroom. The rates of interest are generally lower than with an unsecured. However you do have to consider that the longer you take the loan out over the more you will pay in interest. With this in mind choosing loan rates that are low is essential. The biggest downside to taking out a secured loan is that the borrowing will be secured on your property. This means that if you cannot keep up with the repayments you are at risk of losing whatever you secure on the loan.
The dealership will offer a loan when buying the car. In the majority of cases this is not the best way to borrow. The actual dealer does not loan you the money, they use certain lenders and loan taken this way can come with car loan rated that are a lot higher than you could get yourself. Do be fooled when they tell you that they can offer you a “special deal” for one day only, it can be easy to be tempted as it might seem the quickest way to get finance. However the deal will not come with the best car loan rates.