![]() While many of the zero percent offers that were common in the past have disappeared, some are still out there, such as a current offer for the 2018 Nissan Rogue. The majority of automakers offer special finance rates to qualified buyers. In many cases, the dealership will be able to offer a better rate thanks to loans that are subsidized by the carmaker's captive financing company. If the finance manager says, "This was the best rate I could secure," you'll have a point of comparison. Getting a preapproval for a loan at your bank, credit union or online lender gives you a frame of reference for the financing that a dealership offers you. This tip applies to loans for both new and used cars. Assuming your credit is generally in good shape, with a score of roughly 720 or higher, there are a few ways to get around today's high interest rates. ![]() But you are not doomed to pay the maximum rates. It's easy to see why you might feel daunted about car buying in such a market. But this is a double whammy for your budget: You will be paying more in finance charges over the life of the loan, and it will take longer to gain equity in the vehicle. Many shoppers will be tempted to take out a longer-term loan to ease the pain of a higher monthly payment brought on by these interest rates. The Federal Reserve is expected to raise interest rates again this month. Used-car shoppers face an even higher rate, with an average of 8.7 percent. Interest rates on loans for new vehicles hit an average of 6.2 percent in October 2018, the highest since January 2009, according to Edmunds research. If you're new to car buying or it's been a few years since your last purchase, get ready for a shock when it comes to financing. ![]()
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