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With the economy at its foot, automakers having fewer sales than last year and are likely to cut down the prices and rates for car finance. Hence, this can be the time to get the best bargains on your car buying and financing deals.
One can expect to get 6.2%, on an average, according to sources on automobile loan in US. You can get a better deal at some online lenders, where interest rates are as low as 5%. However rates vary upon the state, credit history and loan amount and type of car (new or used).
Many people do not know about some of the rights where they can get low rates on their car financing and so fall prey to the higher rate offered by dealership. Thus it becomes very important to know some rights before financing your vehicle.
Discounted rate on Fuel-efficient vehicles:
If you are purchasing a fuel-efficient car then you may expect to get rebate and discounted rates on car buying and financing respectively. As the federal government encourages people to buy fuel-efficient cars by introducing ecoAUTO Rebate Program that offers a $1,000 to $2,000 rebate on the purchase or lease of fuel-efficient vehicles.
There are programs such as Fuel Smart Auto Loan also known as go green car loans coming up to support an eco-friendly approach to car financing. Wherein you have to simply buy a hybrid vehicle or an environment friendly automobile and receive a .30% rate discount on regular new or used car loan rates.
Minority - Be aware:
If you are a minority in the market for a car loan in any state of US you must know your rights.
According to CFA (Consumer Federation of America) report analysis found that African Americans paid auto loan rates of at least 15 percent. For new car loans, 6 percent of African American paid more than 15 percent as compared to 1.7 percent for whites and 1.8 percent for Hispanics. While on used car loans, 27 percent of black and 18.5 percent of Hispanic borrowers paid more than 15 percent as compared with 9.2 percent of white. This advantage is taken more by dealership as online lenders are not able to see your racial/ethnic background.
Therefore, if you are a minority, black, Hispanic or from another ethnic background and going for car buying through dealership, you need to check around for interest rates offered.
Benefits for students on vehicle purchase:
If you are a student of a diploma or recent graduate you can have rebates and discount rate on your vehicle purchase. Recently, car makers including Hyundai, Ford, Mazda and GM have created discount programs, whereby they all offer rebates or discounts specifically for college students.
Similarly, financing a new or used car being a student can avail you cash rebates, low interest rates and flexible paying terms from car dealership, online lenders or financial institution and banks. In addition to this many online lenders, finance cars for college students and provide them loans without credit check that can be used towards the purchase of vehicle from either a dealer or a private seller.
Military car loans to benefit military personnel:
For the military personnel who are trying to get finance for their car. Military car loans can be advantageous to obtain lower interest rates as the lenders subsidize these loans. Military auto loans do not require a fix residence or a steady job while one can also qualify for this loan even if he/she is just enlisted in the forces.
Besides lower interest rates, military auto loans feature more flexible repayment in terms of the loan amount, loan period and so on. Under the same financial circumstances, military personnel can get higher loan amounts on military auto loans than on regular vehicle loans with lower interest rate. Thus military personnel should take the advantage of the privilege open to them before applying for auto loan.
Above are some of the options wherein you can get the best out of car financing, which makes necessary for borrowers themselves to inquire before going for it. Hence, that can get you lower monthly payments while getting you your dream vehicle.
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