Different auto loans options available

Good credit scores can fetch you better auto loans in the market. Unstable income and thus irregular payment of previous credits can be one big reason for the lenders to avoid giving you car loans.

Everyone wants low monthly payment of auto loans. Mode of payment and auto loan rates goes side-by-side. If you opt for used car auto loan, the monthly payments would be low, but lenders charge higher rates as they consider used cars more risky than new cars. The total loan amount along with the interest to be paid for the used car may be almost equal to the price of a new car. New cars have better and lower auto loan rates.

You can get better loan rates even if you have a bad credit score, if you can arrange for a cosigner. The cosigner with a good credit score assures the lender that the money lent is safe. You also need to assure your cosigner that you will make regular monthly payments.

Another option is guaranteed auto loans. These loans are based on your job status and a verifiable payment record. The type of auto loan rate is somewhere between the no credit car loans and good auto loan rates.

You could also reduce the auto loan rates by seeking quotations from different creditors and comparing their quotation price for new and used car loans. You can negotiate the rates based on the quotation given to you.

You can also take the help of auto loan payment calculator, to compare the rates of various lenders. As an informed purchaser, you can bargain better without the fear of being cheated.