If you are thinking about purchasing a new or used vehicle and would like to finance your purchase rather than pay cash, it is important that you do your homework on current auto financing rates to get the lowest rate. Many institutions offer auto loans, including online lending institutions, banks and credit unions. Auto finance rates that are being quoted to you should be lower than your credit-card financing rates, considering the loan is secured by the vehicle, although this depends on the financial institution and your credit history.
Ask the car dealership if they are able to arrange car financing for you, and if so, where current auto rates generally are. The dealer will likely ask for your credit score before giving you an answer.
Call the financial institution where you currently have your accounts and ask if they offer car loans. Follow up by asking for current auto-loan rates after providing your credit score, the year of the car you are looking at and the desired term of the car loan.
Call your local motor club service, such as AAA, for the current rates on auto loans. Although average auto-loan rates are also posted online, the final rate that you pay is dependent on the term of the loan, your credit score, your ability to service the monthly car loan payments, the vehicle you are financing and the institution giving you the loan.
Research car loan rates online using services such as E-Loan.com or Bankrate.com.
