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June 12 2008
9:45 pm
Car Loans
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Seven Commandments for Getting a Low Cost Car Loan

Tip! Try to find an auto loan with an affordable monthly repayment that you can pay back in as short a timescale as possible. If you can pay back your car loan within three years instead of five, you will save yourself big bucks in the long run.

1. First check your credit rating. A good credit history will enable you to avail a low cost car loan on attractive terms and conditions. A good credit rating will also improve your loan approval chances.

2. Spend time researching in the market about the actual cost of your dream car. Compare prices from various local dealers. Look around for offers and discounts and talk with at least three dealers to get a better deal.

Tip! Don’t get lured by the car loan rate from the manufacturer or the dealer. They can be exorbitant.

3. Calculate your monthly income minus all your spendings to find out how much you can afford as a monthly installment. Be realistic in your analysis. A thumb rule is that your monthly installment should be less than 20 percent of your monthly earnings.

4. Make sure you have enough money for the down payment. Make provisions for as much down payment as possible.

5. Don’t get lured by the car loan rate from the manufacturer or the dealer. They can be exorbitant. Don’t get trapped in marketing gimmicks like 0% interest rate, free insurance etc. Only people with perfect credit ratings actually qualify for these deals.

6. Explore the market and shop around to get a low cost car loan. Seek advice from banks, car dealerships and lending institutions. Look for online loans on the net. You may come across a fast and low cost car loan.

7. Try to find an auto loan with an affordable monthly repayment that you can pay back in a fixed time period. Always remember the smaller the monthly installment, longer is the repayment period. Longer the repayment period, higher is the actual cost of the loan.

Keeping the above points in mind while availing a car loan can help you considerably in finding a low cost car loan.

Tip! Get Financed To Re-establish Your Credit - Getting a new car loan can help you re-establish your credit when you make your payments on time. Once you have made payments on time for about 6 months or longer, you should be able to refinance your car at a much lower rate.

About The Author: The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Adverse-Credit-Car-Loans as a finance specialist.

For more information please visit http://www.adverse-credit-car-loans.co.uk

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