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Digital News Report – Car loan rates are declining this week. The average local rate was 7.67% this week for a 60-month new car loan.
There are many variables involved in computing a car loan rate. New car loans are cheaper than used car loans. The length of the term will also affect the rate. Unlike mortgages, the shorter term may not have a lower rate.
The credit score of the borrower will also be a factor. Loan agents recommend checking your credit history for mistakes before applying for a loan. One bad credit score from one of the bureaus can prompt the lender to decline the loan.
Not all lenders have the same rate. Kaiser Federal Bank had rates starting at 4.74%. The bank recommends borrowers seek pre-approval before they go shopping for a car. They can also re-finance an existing car loan.
Chase Bank had rates starting at 4.48%.
Bank of America had the lowest interest rates. On a 48 month new car loan they had a rate of 2.99%.
Wells Fargo had rates starting at 4.23%.
Not everyone can qualify for the zero percent interest rates offered by the dealers. There are other options.
By: Tina Brown