Car Loan Interest Rate Comparisons help you calculate the exact monthly EMI of your car loan at the desired loan interest rate over a certain tenure. Calculating the EMI is very simple. Just figure out your car loan interest rate and add the annual taxes and other miscellaneous expenses. That is the amount you have to pay as EMI per year.

This way you can easily calculate the exact amount you need to pay as monthly EMI over one year. Now, figure out the new car loan interest rate and see how much it will reduce your EMI as per the auto loan calculator. The new cars cost more to purchase compared to used cars. Therefore, the used car cost more to purchase. You can save money on your car loan interest rate by opting for used cars.

Car Loan Interest Rates
How Factors Affect A Auto Loan Interest Rate

Sometimes, the car loan interest rate higher interest rate charged to borrowers is because of various factors. Here are some major factors which affect the EMI. The processing fees, title and registration fees, registration renewal, etc are some charges that the banks charge to the borrowers. They do not include these fees in the EMI, so the bank feels it is necessary to charge these additional charges to get back their money.

Your credit score may affect your auto loan interest rate. Your credit score gives information regarding your financial stability to the banks. It shows how responsible you are and whether you will make timely payments. A bad credit score means that you will have to pay higher interest rates. If you want to get the lowest car loan interest rate, check your credit score, and improve it.

If you think that you cannot keep up with the payments due at the time of the loan repayment, contact your lender immediately. The sooner you inform your lender, the earlier he can test your current financial position and find out if you are financially prepared to repay the loan amount. Most lenders provide special financing programs for those who have bad credit scores. You can avail them if you show your lender that you will make the regular payments.

To improve your credit score, always pay your installments on time. Maintain a savings account as it helps a lot in case you cannot make the scheduled payments. Make sure that you do not overdraw your bank account by using your card. If you do so, your lender may withdraw your cash offering no help. If you desperately need money, opt for secured loans where you have to pledge an amount with the bank which acts as security for the loan.

Car Loan Interest Rates

Online car financing is also becoming popular. You can apply for these loans by browsing the internet. Browse through the websites of various lenders and compare their interest rates and the terms and conditions involved in the financing. You can find out the cheapest deals by using different search filters.

You must always research the lenders thoroughly before applying for the loan. You can collect information about the various terms and conditions associated with the different loans from the websites of different lenders. By doing this, you will know what are the factors which determine the interest rate and how much it will charge you for the monthly payments. This way you will find out the best deal easily.