January 3, 2020

Auto loan interest rates: how to find the best?

The auto loan interest rate is generally composed of interest and any administrative costs. To ensure finding the best credit interest rate car, check the APR rate: Effective Annual Rate Global. It is the legal rate which includes all the possible costs linked to a car loan. By comparing these auto loan interest rates, you get the best deal. It is on this basis that our credit comparator works.

We will see that to get the best car credit rate, we must also pay attention to a few other points: watch out for too good offers from car dealers, compare LOA and credit and compare used car credit interest rates.

Compare the auto loan interest rate

Compare the auto loan interest rate

As we saw in the introduction, to get the best deal, compare credit interest rate car based on the APR. But that’s not enough. This is not because we know that offers the best credit that all records entitled thereto, quite the contrary.
credit agencies and dealers often offer call rates to encourage customers to contact them but these very low rates are often reserved for the best records.

To counter this logic, we have developed an exclusive system. Our credit comparator not only gives the ranking of the 3 best interest rates on auto credit (but also for other projects and not just the auto loan) AND it will also give an immediate answer in principle from the cheapest organization. This system makes it possible to know if the file can pass for the best rate. If this is not the case, just ask the second best offer in a single click, and the third still a click. In this way we promote the possibility of obtaining the best credit interest rate auto.

Why Compare Auto Credit Interest Rates?

Why Compare Auto Credit Interest Rates?

To realize the difference that there is from one car loan to another and what the difference between 2 car loan interest rates can represent, we suggest taking a concrete example.

One of the most requested for auto loan is the credit $ 10,000 credits over 60 months. If we compare the auto credit of the largest credit organizations, here is the result:

  • Auto credit rate lowest: 2.89% monthly installment: 179.03 USD Total cost: USD 741.80
  • Car credit rates most expensive: 6.91% monthly payment: 196,60 USD Total cost: USD 1796.00

M ore than 1000 USD difference of interest in the exact same credit! And one that offers the most expensive credit at this time for this example is probably the best-known credit agency of France. Compare credit interest rate car is essential to not getting scammed hundreds of USD!

New and used car loan interest rate

New and used car loan interest rate

Another important point to keep in mind is the difference between the used auto loan and that the purchase of a new vehicle.
The used car loan used to finance the purchase of any vehicle used for over 2 years. The new car loan makes it possible to finance new vehicles or vehicles less than 2 years old.
The main difference between the 2 is at the level of the car loan interest rate. Indeed, it is a little lower for new auto credit. The reason is simple: if too many unpaid, the credit agency will seize the car. Yet the resale value of a new car is mechanically more expensive than a used car.

Another difference between the two is that the used car credit is not necessarily an appropriation for a sale. The new car loan is dedicated to the purchase of a vehicle, to obtain it it will be necessary to provide proof of purchase (generally the purchase order) in the credit application file. The advantage is that if the credit is not obtained or if one wishes to withdraw, the legal withdrawal period of 14 days of the credit also applies to the sale. While in normal times, it is not possible to return the purchase of a new vehicle after the takeover of the latter.

By obtaining the best used car loan interest rate, it is possible to finance the purchase of a used vehicle from a dealer as well as from an individual via sites.

Dealer credit offers

Dealer credit offers

A good part of car loans is offered directly under concession by organizations such as Credihen or SCEa (the credit organization of the Renault group in France). Beware especially of these loans because they are generally more expensive than credit specialist organizations like Sofinco and Cofidis. Indeed, the concessionaire, as an intermediary, usually takes a commission. Only credit type offers self 0 rate, offered once a year, can be interesting.

And yet, beware because often these offers are valid only over very short periods. They generate huge monthly payments that are very difficult to repay. Typically, customers require a longer repayment term but in this case the offer is no longer valid and the credit interest rate car can be much more expensive.

Our advice for those who are asking the question of a car loan in concession is to follow the following approach: get the best car loan rate from major credit organizations through our auto loan comparator. Once the proposal is received, go to the dealership and ask the seller for its best rate. Either he can beat the offer you are going to show is you have the best credit interest rate auto hands.

2 last advices for the car loan in concession

In the case of a really cheap credit offer in car dealerships like the 0% auto loan type, make sure you don’t get too small a discount on the price of the vehicle. Indeed, if they make a refund on credit, dealers may not make great efforts on the price of the vehicle. Now a free credit is often equivalent to about 5% discount on the price of the car.

Rental with LOA Purchase Option is increasingly offered by sellers. This product is attractive because it has generally facially small monthly payments and allows not having to manage the resale of the car. But its big flaw is that it is actually very expensive. This is what we demonstrated in our comparison of auto credit, LOA and LLD. And the worst part about it is that the law allows not to communicate on credit interest rate car from a LOA. Yet this product is nothing more or less than a credit presented otherwise. And if we calculated the interest rates, customers would have nice surprises!

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