Used Car Loan Rates – What Lenders Are Not Telling You?
Used car loan rates have hidden aspects, and there are some things that lenders will not always tell you about. There are advertisements all over the place from car dealers who are offering too good to be true interest rates on used car financing and credit loans, like zero percent for the first year or two, but most consumers will not qualify for this type of deal. Your credit score plays a large role in the interest rate that you will pay, and the lowest car loan rates are only given if you have the top credit scores. Used car loan rates for most people are higher, and the lower your credit score is the higher your interest rate will be when financing a vehicle.
An upside down car loan is another hidden factor, one that lenders will not tell you about. When you purchase a car and receive financing, it is possible that the value of the vehicle is lower than the amount you will owe on the loan. Even with full coverage insurance if anything happens, you could find that you still owe a balance after the insurance company pays the blue book value of the vehicle. Used car loan rates which are high, can significantly add to the amount you will owe for the vehicle, and these high rates are common for car loans with bad credit.
Whether you are trying to refinance car loan or take out a new one you want a low interest rate, and sometimes you can find the best deal away from the used car dealer. You may get better used car loan rates from a credit union or bank where you have a history and account, and the best way to choose the lowest priced financing option is to compare and evaluate all of your choices. No credit car loans can be one of the worst finance products available in many cases because many auto lenders charge a higher rate for this category then they do for having poor credit.