Get the Best Auto Loans at the Lowest Mark Ups
If you are planning to get an auto loan, you will find a lot of options. You can get an loan through credit unions, banks, online direct lenders, loan brokers and auto finance companies. In order to get the auto loan at the lowest mark up rate, you need to understand a few things. First of all, you need to analyze your lender options and the current market place for interest rates. You also need to analyze your own financial situation and your limitations.
In order to get an auto loan, you need to understand how these things work. If your credit history is outstanding, you can expect to get the most attractive deal. If you have an average credit history, your mark up or interest rate would be almost 60% higher in comparison to those with a clean credit history. People with extremely poor credit history might have to pay two to four times more.
A lot of things are included in getting an auto loan at lowest mark ups. Your lender is the most important factor. If you are not borrowing money privately, you have options like banks, auto finance companies etc. Your mark up rates will depend a lot on your choice of the lender. Each lender will have its own advantages and disadvantages, so you need to be very careful while making a choice.
Your mark up rates also depends upon the type of car you are planning to purchase. If you are getting a new car, rates are often very low. Things will be different for a user car or a very old car. So, the choice of your car will matter a lot. The length of the loan term is also a very important factor, when it comes to car loans. The longer loans for instance, 5 years, come with higher interest rates. Lenders will always keep in mind your credit history; so, if you have a good one, you will get a car loan at lowest mark up.
Getting an auto loan through a car dealer automatically becomes an expensive option. Car dealers actually earn compensation if they arrange finance; if they want, they can pass that compensation to the buyer as well. The financers of this type of loan get money at wholesale interests, which is passed on the buyer, and because of this, chances are that you might get lowest mark ups on this type of loan.
If you get an auto loan through credit union options, you should know that they offer very good rates. They provide less than 20% of the total loan. Always keep in mind that mostly news cars qualify for zero percent financing. If you plan to take auto credit for an old car, chances are that you will get higher rates. Nowadays, you can also find online lenders, and they can provide you with more alternatives and improved rates.
