When you are searching for a new vehicle, arranging the finance for it could be a difficult and, sometimes, a harrowing experience. If you are one who cannot be satisfied easily with what you see and would like to go for all accessories, it can become that much more difficult. You will be able to strike a smart purchase if you become a well-researched customer. You can then go away with a better car and a better deal. The deal has to include a better rate on your car loans. This part of the deal is as important as any negotiation with the car salesman at the showroom.
Important Factors of obtaining Low Interests on Car Loans
You have to remember the factors of how to obtain a low interest car loan. One of the most important factors is the LTV or the Loan-to-Value quotient where you qualify for a lower rate of interest. The higher the down payment, the lower will be the rate of interest on your car loan. The minimum recommended down payment is twenty per cent of the whole amount. This kind of an arrangement reduces the likelihood of you going `upside down’ on the loan. This works on a mental theory that the more of the car you own at the beginning, the least likely you are to default on the car loan.
Interest Rates are Negotiable
Many people do not know when they go out to finance their car purchases that the rates of interest may be often just as negotiable as the price of the car itself. If you are clear about your credit standing, you can categorise the range that will be available to you and this puts you in a better position for getting the best rates for your car loans.
Doing some Homework and Research
It is better to do some research before you enter the showroom. A good backlog of information can come in handy during the negotiations. There are many options and lenders available and you can get information about various lenders from one central hub. Your own financial institution such as your bank would be able to provide information. Some people do not realise that their banks themselves may offer car loans to them and the rates for the loan may be far better than what they may come across at the dealerships.
This is where we come into the picture. At Transfinance, we will help arrange a loan to buy your new car and assist in the selection of the right finance among some of the best loans available. We work in collaboration with several financial institutions. Whatever your credit score or your financial history may be, we will help you select the best loans at the lowest rates.