Auto Loan Rates
When Your are applying for a car loan, the most important thing is auto loan rates. Auto loan rates are the interest rate you have to pay on your auto loan. You need to find a lender who give you auto loan on low interest rates. You can get auto loan for the following periods
12 months Auto Loan
24 Months Auto Loan
36 Months Auto Loan
48 Months Auto Loan
60 Months Auto Loan
72 Months Auto Loan
84 Months Auto Loan
Some Lenders allow you to have only 60 months car loan. The minimum requirement of down payment is 10 % of the total car value. You can easily get auto loan quotes from lender websites or their offices.
As other loan loan rates are usually two types fixed rates or variable rates. Fixed rates are higher than variable rates. Each country has their own interest rates and they depend on that country conditions. Auto loan rate can be from 4% to 16% .
For getting a car loan, insurance is mandatory and insurance rates are from 3% to 4.5 % of the total car value. Insurance secures the both parties. In some countries venders allow you that you can pay insurance yearly payment from you auto loan. By doing this borrower get advantage that he pay his insurance in monthly installments.
Before getting a auto loan you should also consider prepayment penalty. Prepayment penalty means that you have to pay some extra money before clearing the loan before it's ending time. Prepayment penalty can be 1 to 5% of the remaining amount. Some lenders in the market give you no extra charges for clearing the loan before time.
Your monthly installment consist of two parts Interest and Actual Loan.
Each Lender defines its own percentage for interest and actual loan in auto loan monthly installments, it can 30 : 70 or 40 :60 respectively and As loans period declines the actual loan ration will increase.
Example :
| Years | Interest | Actual loan |
| 1 | 30 % | 70 % |
| 2 | 25 % | 75 % |
| 3 | 20 % | 80 % |
Get all the information and than select the best lender.