The current downward trend in credit rates is the perfect opportunity to buy a car. It is therefore wise to follow the evolution of the car loan rate in order to find the most interesting at the right time. It is advisable to compare the different offers according to the duration and the amount of credit to find the best rate.
Auto loan rates still attractive
At the start of the year, the evolution of the credit rate for a car follows the downward trend of the end of 2016. Thus, the borrowing rates for a car continue to decline in March, representing a great opportunity to make a car purchase project reality.
Currently, the average annual effective annual rate for a car loan of 15,000 dollars over 12 months is 2.12%. This car loan rate, which varies according to the borrower’s profile, notably includes the administration fees and the various charges and can be negotiated in order to obtain the best offer. Finally, the zero rate loan, offered by some dealers, can be a good deal depending on the capabilities of the borrower.
Finding the best loan rate for a car
Any borrower wants to find the best loan rate for a vehicle purchase, but it depends first on his situation and his abilities: zero-interest credit can be very attractive for some, but much less for others. Indeed, it is only possible for very short periods and it requires a substantial contribution, which means that the monthly payments can be very high.
In general, the car loan rates that drop the most are currently those for a loan of more than 15,000 dollars and a period of 48 months, as well as those for small sums of less than 5,000 dollars and a duration of 60 or 72 months. In any case, it is important for the borrower to take the time to compare the different offers of the organizations and in particular of the auto loan platforms on the internet.
Having a good credit score is essential if you want to get approved for an auto loan with decent terms.