the Cost of Auto Loans

I recently purchased a new vehicle and needed to take an auto loan out to do so. The interest rate through the dealership was going to be around 12 percent so I checked with my bank and found their interest rate to be 6 percent. The insurance on the loan was $1,500 and with $125 in loan fees. The monthly payment will be $450 a month with the payments taken out of my account weekly (at $105/week) instead of one large payment each month.

The assistant loan officer that I met with was very cold and unfriendly. She went over my credit report with me, asked me a few questions, and than told me that because I had almost no credit I would not be able to get a loan anywhere and that I should just by a cheap car instead. I was unsatisfied with her answer since I had been approved through the dealership and requested to meet with either her supervisor or the loan officer if he was available. The loan officer was available so I went and met with him, he was very friendly and when I explained what I had just been told by the assistant and what the dealership had told me, he looked at my file and said that I could be approved for a car loan at the 6.25 percentage rate over five years. If I had only talked to the assistant loan officer I would not have gone through the bank where my other accounts where and would have closed those accounts as well and taken my business elsewhere.

Check around for the best interest rate from both the dealership, your personal bank, and also any credit unions in the area. Make sure you are getting the best interest rate, low fees, and customer service before you sign any paper work. Also knowing what is on your credit report will help a lot.