Sub Prime Auto Financing Is Generally A High Car Loan Interest Rate
A car loan interest rate is directly connected to ones credit
. Those with good and excellent credit will experience much better rates than those with poor or bad credit. No matter what the dealer says or you read on a website. Also new car finance rates are generally less than used car interest rates. What is called sub prime auto financing is the most expensive auto financing thats in the marketplace.Its designed for those with poor and bad credit and who are willing to pay high interest rates in order to get a car. While its expensive it is also often the only financing available to those with bad credit. People with bad credit need a car just like everyone else and its better to pay more and have a car than to be deprived of the chance to buy a car.
Another way to get an auto loan is to get pre-approved on line. This allows you to know what you qualify for. Approved auto loans can then be taken to a dealer giving the loan recipient a much stronger negotiating position than depending on the dealers financing. Often this gives results in the buyer getting a much better price on his or her next car. This works similar to whats known as blank check car financing which is virtually no longer available. Pre approved auto loans are the next best thing and very similar.
So you can see that car financing comes in a number of forms primarily depending on your credit and also if you are looking for new car finance versus a used car. No matter what your circumstances, starting your search for getting the best car loan interest rate on line is the way to go. There are many lenders set up who are able to work with all types of credit and situations and who can provide the best rates available for whats needed.
by: Shelin Michel