| Car Loan - Tips Can Help Drive Smart Loan Deals | | | | Verify your credit record. Order a copy of your credit |
| 05th January 2006 | | | | report to ensure it's accurate and in good shape. |
| Author: Alan Luong | | | | Correct any errors before applying for a loan. |
| Many new car buyers will appreciate the latest | | | | Comparison shop for loans. Check out credit unions, |
| automotive trends expected to take shape in 2006 | | | | banks and online lenders to see what rates are |
| and beyond. A greater variety of downsized, | | | | available in the market, so that you know a |
| fuel-efficient SUVs will be available. New vehicle | | | | competitive rate when you see one. Visit Web sites |
| safety features like tire pressure monitors will reach | | | | such as and |
| the market. And sales promotions like last summer's | | | | Arrive with financing in your pocket. Having approved, |
| employee discount campaign are expected to set the | | | | no-obligation financing in hand gives you a competitive |
| stage for year-round, no-haggle vehicle pricing. | | | | advantage when you go to buy, giving you the power |
| But a less-publicized automotive trend - rising interest | | | | of a cash buyer. If the dealer offers a better loan rate, |
| rates - will make 0-percent car loans a rare breed in | | | | you can take it with no penalty. |
| 2006. Increasingly, consumers will need to comparison | | | | Approach your purchase as three transactions. It's |
| shop for their car loans before they go to buy, just as | | | | best to treat each part of the purchase separately: 1) |
| they do for the vehicles themselves. | | | | financing; 2) trade-in; and 3) vehicle purchase. This will |
| According to Bankrate.com, interest rates on new car | | | | simplify the process and maximize your negotiating |
| loans rose steadily throughout 2005 and the pattern is | | | | opportunities. |
| expected to continue into 2006. The difference of just | | | | Match length of loan to expected length of ownership. |
| two percentage points on your APR can either save | | | | Select your loan term based on how long you plan to |
| or cost you more than $1,400 over the life of a typical | | | | own the vehicle. Buyers who take out longer-term |
| loan. | | | | loans can find themselves "upside down" on their loan |
| "Many consumers do not realize that they have other | | | | (owing more money on the car than it's worth in trade). |
| options for financing their car, outside of the dealership," | | | | Review your financing terms carefully. Make sure you |
| said Brian Reed, vice president of Capital One Auto | | | | know your interest rate, monthly payment, amount you |
| Finance. "There are some great options for consumers | | | | are financing, the length of your loan and your trade-in |
| to finance their car on a direct basis, versus relying on | | | | value. |
| the dealer to provide that service for you." | | | | "If car buyers would spend just a fraction of the time |
| Because education is the key to getting the best deal | | | | researching their auto loan as they do the latest |
| when financing a car, Capital One Auto Finance offers | | | | features on their new car, they'd be surprised at how |
| prospective car buyers the following helpful tips: | | | | much money they could save," said Reed of Capital |
| Set a realistic budget. Choose a vehicle that won't | | | | One. |
| overextend you financially. A general rule of thumb is | | | | For more information about loan, please visit which is a |
| that no more than 15 percent to 20 percent of your | | | | loan site with a lot of useful loan information on many |
| total monthly budget should go toward all your | | | | different types of loan, and many useful loan tips to |
| car-related expenses. | | | | help you to avoid loan scam. |