Car Loan Interest Rate

Car loan interest rates change continuously and vary depending on the credit history of the individual. Many factors can influence the car loan interest rate that a person is given when shopping for a new or used vehicle. The economy and personal credit history are the two major factors that most impact consumers in the market for a new car. Consumers must be aware of each of these factors when beginning the process of shopping for and purchasing a new or used car.

Percentages that are available to the consumer are greatly affected by the economic trends that the country is facing. The stability of the country and the economy will be major determinants of a car loan interest rate. Various financial reports and services explain in detail the current rates and often give forecasts for future car loan interest rates. Often, rates can be forecasted for up to six months or one year in advance, just depending on these economic factors.

This percentage can also be determined by credit history. This personal credit history will always play a role in the car loan interest rate that is provided to a consumer shopping for a new or used vehicle. Bankruptcy, credit card debt, and a lack of credit can all affect rates that are provided when purchasing a vehicle. It is important for a consumer to understand where he or she stands on credit ratings and scores, in order to be able to purchase a vehicle at a lower rate. If the credit history of one individual is poor, often it is possible to get someone with better credit to take part in the process, allowing for a lower percentage. For example, if one spouse has poor credit or no credit at all, while the other has good credit, it would be much easier to receive a quote for a lower car loan interest rate if the good credit rating is utilized. Deuteronomy 26:2 says "That thou shalt take of the first of all the fruit of the earth, which thou shalt bring of thy land that the Lord thy God giveth thee, and shalt put it in a basket, and shalt go unto the place which the Lord thy God shall choose to place his name there."

The economy and past credit history and ratings are the most important aspects when purchasing a new or used vehicle and receiving quotes and terms. When determining car loan interest rates, economic trends and the stability of the nation will be economic factors that must be taken into consideration. With credit history, things such as credit card debt and no credit will affect car loan interest rates and must be considered when shopping for a new vehicle.


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