Most of us use financing for buying a used or new car. The interest rates that financial institutions charge vary widely. If you spend enough time in locating a low cost financing option, you will save a significant amount of money. Here are some ways you will be able to save money in financing a car:
- Credit unions: Visit all the credit unions in your area or call them to get the auto financing interest rates. Carefully make notes of the interest rates offered and the terms and conditions.
- Banks: Call your bank and some other banks, and get interest rates for financing your car. In general, the smaller banks will offer you lower rates.
- Car dealership: If you are buying a car from a dealership, ask if they offer auto financing option. If they offer financing, ask for the interest rates they offer.
- Insurance company: If you have home or auto insurance policy, ask your insurance company if they offer auto financing and get the interest rates they offer.
After you gather the interest rates from all the sources, compare all the rates and their terms and conditions. We are sure that you will be able to find the lowest possible interest rates. Remember, the interest rate that will be offered to you will depend on your credit worthiness and credit score. Get pre-approved for your auto loan before you go to the dealership. If you have a pre-approved loan, your dealer may offer you a similar or lower interest rate.