If you are trying to get a car loan, it is crucial that you choose a lender that will offer the lowest interest rate. If you’re lucky, you can find a bank or credit union that can have your loan drawn up in just days. However, if the online options at traditional brick and mortar lenders don’t work out for you then using an online lender is your best bet.
Lender fees involved in getting a car loan will vary depending on the lender. However, if you’re lucky you’ll never need to pay more than one lender fee. If you’re coming up with a large down payment, you could be looking at between 2-6% of your loan’s principal amount. This fee goes to the bank or credit union that draws up your loan papers for them to process it. It is not uncommon for these fees to be lower online because some online lenders are able to make their services free of charge or more affordable through various means.
Another lender fee that can keep your interest rate high is the origination fee. This fee is a percentage of the amount you borrow. These fees vary from lender to lender, but most banks will charge a 0.5% origination fee on a $10,000 loan. When you find a bank or credit union that has no origination fee it will truly save you thousands over any other lender. Of course, it is important to note that if your credit is not stellar then you may run into issues getting approved for the loan you need.
It’s also important to consider how long it took for your loan to get approved before deciding which online lender to go with. This will also affect your interest rate. Most of the best online lenders are very quick with their applications, so you do not have to wait too long to get approved. If you are looking for a car loan but are having trouble finding the right lender, it is important that you keep your eyes open for new options.
Lender Process Time for Car Loan
The process of getting financing is generally fairly simple compared to other forms of financing. If you have poor credit, this process can be more complicated because most banks will want to see that you have at least proven that you can pay off the loan on time if nothing else. When you are looking at the best car loans possible, it is important that you look for an online lender who can offer their services to you quickly.
When you are comparing the cheapest car loans with quick approval times, it’s important that you consider looking online for your financing. A lot of the traditional institutions still require extensive time to process even though they have streamlined their loan processes. With an online lender, getting approved for your loan can be done in as little as 10 minutes. After getting approved, most lenders will have your money deposited directly into your account within 2-3 days.
The best way to find the lowest interest rate possible is to search online for a lender that offers cash loans. These cash loans are funded by either debit cards or wire transfers. This means that there are no fees associated with these loans so you can receive a lower rate on your car loan as well as have the lowest interest rates possible.
5 tips to get the lowest interest rate car loan possible
- Shop around and get multiple quotes: As we’ve already discussed, getting a very low interest rate can be a very big incentive for anyone looking to get a new car loan. Lowering the interest rate on your auto loan is one of the biggest benefits of shopping around and comparing your options instead of simply going with the first lender that gives you an auto loan.
If you’re looking to get a great deal on your auto loan, it’s important that you take the time to shop online for several different lenders and compare rates. Because there are more serious consequences for not paying back an auto loan than there are with other loans, some lenders will offer even better rates if they know that they will be less likely to have issues with their payments.
Pay off as much of your loan as possible: When you’re getting a new car loan, the more money you can put down upfront, the lower your interest rate will be on your loan. The best way to get a low-interest rate car loan is to put at least 20% of the value of the car that you want to purchase down as a deposit.
If you want to take this tip even further, many people recommend putting 50% or more of the value of the car that you want to purchase down for your car loan. However, it can be tricky to put down so much money for your new car when you have to take out another loan elsewhere. If you are looking to get a low interest rate car loan, this is usually your only option because the only way that you will be able to afford the car that you want is if you put down enough money for it.
- Apply for auto loans at all different credit rating levels: There are specific lenders that can specialize in offering auto loans with no credit rating such as Canadian Cash Solutions. These types of lenders typically charge higher rates of interest and fees than normal lending options because they know that they won’t have to deal with people with poor credit histories.
Just because you don’t have good credit doesn’t mean that you won’t be able to get a great deal on your auto loan. It is important that you apply for loans with all different credit rating levels so that you get the best rate possible on your new auto loan.
- Consider getting a cash loan instead of using your credit card: There are two main types of loans when it comes to buying an automobile: auto loans and cash loans. The difference between these two types of loans is the fact that cash loans are funded by debit cards or wire transfers rather than credit cards. This means there are no interest rates charged in most circumstances when you apply for an online cash loan.
There are two main reasons to consider getting a cash loan as opposed to an auto loan:
One- Cash loans give you an opportunity to negotiate a lower rate on your auto loan. If you put down more money as a deposit, the lender will be more likely to give you a lower interest rate on your auto loan.
Two- Cash loans have lower interest rates than auto loans do. These types of loans are funded with debit cards or wire transfers so they generally have lower interest rates than loans that are funded by credit cards. This means that using a cash loan can offer some serious savings on your new car purchase overall.
- Consider paying for your new car in cash instead of financing it: When you pay for your new car in cash, you don’t have to worry about putting the money for your car loan on a credit card because you are taking it out of your own pocket. This means that there are no interest rates associated with the purchase of your vehicle.
If you are looking to get a low interest rate car loans, you will often find that this is the cheapest option available to you. The only drawback is the fact that you have to be able to afford to purchase an automobile in cash in order to get so many benefits associated with this type of financing.