When you read up on the Internet about getting the lowest car loans rates you qualify for, they will usually ask you to shop around, and perhaps get a few quotes from lenders before even setting foot in a dealership. While that is good advice admittedly, how low can it go? The way the auto industry is anxious to woo buyers for their products, going down to 0% is often not out of the question. The way credit is finally becoming easier all around (and not before time too, judging by the way everything’s been really locked down tight for the past three years) auto loans everywhere are becoming cheaper – and the automakers themselves are offering loans at no interest flat.
The best free loans come from the Chrysler group. You’ll see them in their advertisements for every model the carmaker makes, except for the Dodge Challenger and a couple of RAM models. They must move a lot of those, and feel they don’t have to go down the low financing path. Many of their models come with an ultralow 2% interest rate. But 0% car loans rates aren’t the province of Chrysler alone. You’ll find them on lots of Ford models, except for a couple of high-performance cars and popular hybrid models. At GM, they have great 0% loans rates on a few Cadillac models and pedestrian models like the Malibu and the Silverado. The folks over at Toyota and Honda have competing offers to.
It’s funny how just two years ago, if you didn’t have absolutely perfect credit, you would get thrown out on your ear if you tried to approach a bank about a car loan. If you could manage a loan at all, it would come with a high interest rate, a large down payment and also the requirement that you brought in someone with better credit who was willing to act as your cosigner. These days, you just have to have a job and not completely wallowing in debt and other car loans you may have. Credit scores below 500 find a great welcome at the auto dealers’ too.
While all this is great news, there’s a way to squander the great deal you get on such auto car loans rates. It’s if you buy up all the options the dealers offer you as add-ons. They’ll often sell you add-on packages with all kinds of extras packaged in one unit for what they claim is an ultralow price. Usually, the price they offer you for the package is no lower than what you would pay if you bought the items in there individually. When you buy stuff as a package, you do end up buying more stuff than you otherwise would, and this is a good thing for a dealer who’s trying to move this much stuff out as possible. Make sure especially that you never buy auto insurance and extended warranties at the auto dealership. These are usually higher-priced than what you could manage elsewhere.