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How You Can Get the Lowest Interest Rate on Your Car Loan - YouTube
Channel: Bob Hook Chevrolet
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hi welcome back to ask Bob here at
Bob Hook Chevrolet where we answer your
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questions about the car business and
carbine today's question comes from
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Amanda from have you and Amanda asked
Bob how can I get the lowest interest
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rate on my car loan so Amanda I'm
assuming you're thinking about buying a
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car and you want to do some financing
and I get that question all the time
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because I know a lot of people very
intelligent educated people that just
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have a lot of mystery around car loans
and and they don't know what to expect
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as far as interest rate so your interest
rate will be determined by some things
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that are specific to you and your
purchase so the first thing is your
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credit score the second thing is what
interest rates are out there today
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what's the federal interest rate what
are bank's loaning money at so that's a
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big factor too and that changes
month-to-month the third thing is just
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the structure of your car loan what term
do you want do you want to finance for
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48 60 72 months what's the total dollar
amount what's the down payment per the
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percentage of the loan that you're
putting down a down payment so those
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three categories those three things go
together to determine what your specific
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interest rate will be so here's my
recommendation before you walk into a
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dealership or anywhere to buy a car
first thing is know your credit score
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your score is going to determine what
risk you are to banks as far as loaded
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money if you're a 720 plus you are in a
great spot you're gonna qualify for the
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best interest rates out there the next
tier would be about a 690 to 720 you're
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still going to get a good rate just not
the absolute best one and then the tier
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about 650 to 690 600 to 650 those fall
into different buckets as far as banks
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look at what interest rate they want to
loan you if you're below a 600 that's
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typically what we define as subprime
credit you're gonna really gonna have to
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pay a higher interest rate if you want
to borrow money and there may be some
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extra hoops that you have to jump
through so know your credit score the
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second thing I would do is go to your
bank where you have a checking account
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savings account
and ask them what you could get a car
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loan for tell them about the amount of
money you think you're gonna borrow what
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kind of money you're gonna put down and
just have them give you a quote
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I'm just think you should have one
pre-approval before you walk into a
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dealership or look at buying a car you
should be an educated customer that's my
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kind of number one tip on getting the
lowest interest rate is be educated is
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what's out there and what you qualify
for
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so you've gone into a dealership you've
picked out a car you've structured a
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loan you've got it to about what payment
and use you think you can afford here's
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where a dealership can really be a
service to you what we do is once we've
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structured the car deal we send that car
loan to about 10 different mechs 7 8 9
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10 11 12 banks using a program called
dealer track we've loaded the deal in
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and now we're letting banks compete for
your business and there's a couple of
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reasons why this helps get you a lower
interest rate they're competing to get
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business first of all and secondly
they're giving us wholesale rates on it
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on loans for cars because we send them
multiple car deals per month instead of
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just your one car loan where you may
have walked into your bank so that's
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gonna help drive down the interest rate
that you can get you've got to get
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competition for your business so those
are my biggest tips for getting the
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lowest interest rate for car loan if you
do find yourself in that subprime
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category say the the low to mid 600's
are lower than that that doesn't mean
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that you can't get a good affordable car
loan there may be some things on your
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credit bureau that you could address to
bump your score up in a short amount of
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time and it may limit your options as
far as what vehicle you can get one of
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the tips that we've given on one of our
other shows is in that subprime category
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a new car lease may be a great option
for you because the lender knows that
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you're not gonna have any expensive
repairs out-of-pocket in that three-year
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term so there's a lot of things you can
do and we'd love to give you help and
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advice to find the right car for for
your budget so I hope that answers your
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question Amanda Thanks for writing in
and anybody out there if you've got
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questions for us hit us on LinkedIn
Facebook my email
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be hook three at Bob hook net and thanks
for joining us a day
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