Cheap Auto Loan : How to obtain the lowest rate on car loans

You have been nursing your old car along for the last year knowing that with the rising repair bills, it is finally time to start shopping for a new car. Immediately your head starts to pound from the outrageous amount of money you are going to have to pay monthly, or will you? It is time to learn how to find low rate car loans, how to shop for the lowest interest rate on that auto loan and time to learn how to keep some money in your own wallet instead!

Most people will automatically turn to the easy auto financing. Don't do it if you can help it! Dealerships and their financing institutions are not there to save you money, but will pray as much of it out of your wallet as possible. Here are just a few pointers.

• Financing through a dealership is a double hit on the consumer. The dealer makes a profit from selling you the car in the first place, and the financing institution is also making a huge profit on their charges.
• Even when a dealer is willing to cut his commission in order to make the sale, it still pays off because of how much their financing institution is charging you! This just shows you how much behind the scenes profit they are making on regular consumers.
• Special 0% auto loans are even a dicey deal for a couple of reasons. One, the consumer had better have an exceptionally high credit score to qualify in the first place. Two, you had better be ready to give up that rebate because you can't have both. They count on you to be unaware that it is better for you to take that rebate and go with the traditional loan, but offering a 0% auto loan sure sounds enticing, doesn't it?

How do you find that lower interest auto loan then?
There are several choices; choices that will benefit the consumer to be aware of.

• Because interest rates change so often, bouncing up and then down again, it is worth the time to investigate and obtain as many quotes as possible. Finding a lower rating on auto loans needs some perseverance or better yet, find a quoting service without obligation and let them do the footwork for you.
• Credit Unions. Credit Unions usually offer lower interest rates than your local bank and joining one should be very inexpensive in most cases. A lot of people would be surprised at how close they come to online lenders without all of the behind the scenes profit going on at the dealership.
• If you're a home owner, seriously consider a home equity loan. They are tax deductable (always a plus!) and often at a very reasonable, lower interest rate than you are going to find at that dealership.

It just takes a little savvy and persistence, but you can obtain a much lower interest rate auto loan by shopping outside of the dealerships. Remember, they are not the ones paying for your new car and financing through them is going to cost you more.