Friday, 6 June 2014

2 Factors that Influence Your Car Loan Interest Rates

If you are looking for a bad credit auto loan this season, then you must consider some factors.
We have highlighted two such factors in our blog today; we will surely come with the other points in our next blog.

Secured loan

Getting a car secured loan is a total security for money you borrow. This indicates that the car loan lender can seize your car if you fail to make payments on time. As a result, you have to pay a lower rate of interest for a secured loan compared to an unsecured loan option. If you are buying a used car make sure that you have checked the rules against the secured loan.

Bad Credit Auto Financing

Term of the loan

Some of the loan lenders are there who are ready to offer low annual interest rates for longer loan repayment terms. If you are planning to pay off your loan in three or five years, start comparing the lenders based on the rates charged by them for the specific terms offered.

Auto Loan


However, do not extend the loan term to lower your interest rate. A lower interest rate means you are paying a lower amount at the end of the each year. However, unnecessarily stretching the length of the loan will increases the loan amount over the length of time that we feel at car loan asap.

No comments:

Post a Comment