Buying a new car can be a lot of fun, but getting the financing can be stressful. The objective is to get the lowest interest rate and optimum term. Here’s how to get the best car loan stress free.

There are several factors that influence the rate you’ll pay and how you can get the best rate. Prime rate sets the stage for what interest rates will be. Lenders offer a variety of interest rates and packages based on the prime rate.

The Best Car Loan

Market condition will also affect rates. If sales are down, you’ll often see 0% or rates that are below prime offered by the big contenders. Zero percent is also used to help move cars that aren’t as popular. When interest is reduced to very low rates, the term of the loan is usually reduced too. It’s very common to see 0% offered on 2 or 3 year loans and then, as the term increases, so does the rate. Watch for these opportunities.

The type of car you are buying will also affect the rate. New car rates are usually lower than used car rates. As well, dealers often offer incentive packages on new cars where the down Read More