Auto loan rate

Auto loan rates:

Auto loan rates depend on number of factors and it varies to from one bank to another. Also, auto loan rates increases or decreases as per the duration. However, the experts recommended that customers should take auto loan for no longer than four years, still according to the statics 43% of consumers go for six or seven year duration as it lower down the monthly payments but in the long run it doesn’t make any financial sense. Auto loan rates can be floating or fixed. Some Banks like ICICI offering both fixed rate or reducing rates on auto loan rate interest. It offers auto loan rate at a very exciting rate i.e. from 9.5 % to 13% for upto 5 years. HDFC Bank offers 10% to 11% as a rate of interest.  However, it also depends on the number of years you took the loan.

How to get good auto loan rates

1)     Apply for a New Brand Car:  If you are looking for good auto loan rates then apply for an auto loan for a new branded car available in the market. Normally, auto companies lower the interest of latest model of Cars in order to attract more and more consumers.

2)     Buy at the end of the month: In order to have the best auto loan rates one must make the deal at the end of the month as by this time salesmen are crazy to close the sales regardless the auto loan rates. Also, by this time auto dealerships have various contests and schemes for the consumers.

3)      Have a good Credit Score: Everyone is not aware that their credit score will affect the auto loan rate.  If you do have a good credit score than reducing auto loan rates are more likely but if you don’t have than it is better to fix it once and then apply for the loan.

4)      Make Negotiations with your auto loan dealer:  When applying for an auto loan don’t say explicitly that how much money you can afford monthly on your auto loan. Instead negotiate with the auto dealer and tries to know his limit. Negotiate with three of four dealers and then finalize.