Online Car Finance at Lowest Rates Monday, January 5, 2009

Auto loan rates are a secured loan scheme where the car, that you would own, should be kept as a security. This security helps reduce the risk in the minds of the lenders. You have two schemes to repay this loan. You have to give some down payment to receive this loan. There are short term loans and long term loans. The difference is very simple and yet it makes you choose. The short term Auto loans have a comparatively higher rate of interest while the long term loans have a lower rate of interest.

Auto loans or online car loan are necessary to buy a car, or for the matter, any other vehicle. People do pay some amount of cash as upfront payment, but rest of the amount is financed by some financial institution. Before you apply in for any financial institution, you should do some research on the auto loan rates offered by different financial institutions.

Loan rates generally depend on the company you approached and certain other factors: the amount you borrow; the tenure of the loan; the type of new auto loan - secure or unsecured. Calculating and comparing the best auto loan rates can be a headache. If u needs to calculate amount of your loan you can check it over here. They have auto loan calculator that help you determine the amount you will be paying for different tenures under different schemes. These calculators are free to use and once you are done with, you can also ask for a quotation.

Secure loans are the loans where you place something as collateral. In such cases, the money lender has reduced risk. The company therefore offers somewhat low interest auto loan. You can save on the interest. On the other hand, if you are taking an unsecured loan, you will have to pay higher interest. Also, if you have a bad credit, you will have to pay higher interest rates.

Another factor that influences the new and used auto loan rates is the tenure or the number of installments you opt for. Longer payment has lower installments, but you end up paying much more by way of interest. Similarly, shorter tenure will ask you to pay higher monthly installment but you save overall on the interest. For example, for 60 monthly installments on $12000, you will be paying 6.39 per cent. If you choose 36 months, you will be paying 5.34 per cent as interest. If possible, always go for a smaller tenure so that you save on the interest.

If you have no credit history or have a lower than ideal credit score, you may be a perfect candidate for this type of low interest rate auto financing. You just need to know How to get a Bad Credit Car Loan in order to take advantage of the opportunity. This article will tell you how to do that. The first thing you should do is get a copy of your credit report and credit score.