Welcome to our auto loan rate article. Negotiate for an auto loan rate and financing separately. Remember that manufacturer
rebates go to you, not to the dealer.
Unfortunately less than 50% of new car shoppers qualify for no-interest
financing, as an excellent credit rating is required. And many 0% purchasers
forget that the price is still negotiable on any vehicle, regardless of the
financing or the rebate. Many who qualify for 0% financing should also consider
taking advantage of the sometime lucrative manufacturer's rebate (up to $3500 in
some cases).
Lenders are required to show the calculation for Annual Percentage Rate (APR) in
clearly readable type on the contract. The federal Truth-In-Lending Law dictates
that lenders disclose the APR and total dollar amount of the interest you're
paying them to borrow the money for your auto loan. If you borrow $22,000 for a
new car, your cost to rent the money will be between $2,000 and $5,000,
depending on the term (length) of the loan and its interest rate. Don't forget,
the rent is in addition to the price of the car, so your $22,000 car will
actually cost you between $24,000 and $27,000. Dealers, not wanting to alarm
you, will slide right by the real cost of financing, concentrating instead on
your monthly payment: "Would you buy this car today if I could get it for you at
$199 per month?" The amount of interest you pay is spread out over the life of
the loan and varies from month to month. Luckily for the dealer, most customers
don't want to hear about amortization schedules and settle on the dealer's
monthly payment with no further questions. Remember: the interest you pay is a
100% loss, i.e. it isn't tax-deductible.
For Your Free Auto Loans Guide, Visit
http://www.CarAndAutoLoans.com.
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