online resource for auto, truck or motorcycle insurance.
Offering 0% - Is It Time to Buy?
automobile finance rates changing almost weekly, how do you know if
this is a good time to buy a car? If you have a good credit rating,
many companies are now offering financing rates as low as 0%.
With financing rates this low, how can you afford not to get
in on this type of deal?
If you have perfect credit, you are almost guaranteed a
financing rate of 0%; however, itís always a good idea to
check the ads in the newspaper before you do anything. Check the ads
on the car dealers that interest you, and/or the ones offering the
best finance rates.. Pay
attention to their advertisement on the TV or radio Ė sometimes
you can pick up on a sale advertised on the TV or radio which was
not mentioned in the newspaper ad. Even if the prices these ads give
you are not real, they can still give you a starting point.
you visit the dealership, be prepared. If you have a car model in
mind, call your insurance company and ask about rates.
Youíd be surprised at the difference in insurance rates
from one vehicle to the other, even if both models are from the same
year. The same applies
to insurance companies. This
might be a good time to shop around for an insurance company and
a good idea to know your credit score before visiting the dealer.
You can get this information by contacting the credit bureaus
and requesting a copy of your credit report.
This will also provide you with the opportunity to review
your credit report and make sure all the information is correct and
up to date. Many times
a sales person or sales manager will offer you a higher APR than
advertised because they claim your credit score is low.
If you have a copy of your credit report with you, you can
prove to them that your credit is good Ė just in case they decide
to rearrange the number a bit!
However, keep in mind that thereís still a good chance you
will not be offered a 0% APR if your credit score is below 750.
factors to keep in mind:
The 0% APR rates for car
loans are occasionally only on 12 to 36 month loans. If your loan is
for 48 or 60 months, you may not get 0% financing.
The monthly payments on a 12-month loan are typically much
higher than what most us can afford; therefore, it is reasonable to
say that only a very small portion of the car-buying population
would be able to secure and live within this type of loan.
Many dealerships offer a low
APR along with a rebate. Keep
in mind that you canít get both - you either get the low APR or
the rebate. Sit down with the finance representative and calculate
which would be more beneficial to you. If the dealer is offering a
big rebate, you might consider taking the rebate over the low APR.
Before making your final decision, consider visiting E-LOAN
on the web.
E-LOAN offers an online
that will help you decide which option to choose based on your
circumstance. Before you use their
calculator, you will need to know the rate being offered to you, the
purchase price, your down payment, the term length, and the federal
and state tax rate.
is this the time to buy a new vehicle?
Yes, if you have perfect credit, can afford to pay off the
loan in 12 months and don't have a large rebate coming from the
manufacturer. If not,
take the time to review and understand the numbers completely before
signing your name on any contract!
Car Buying Worksheet
this worksheet to help yourself sort though all the data.
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brought to you for general information purposes only and there are
no warranties as to accuracy, completeness, or results obtained from
any information posted on this or any linked website.