Car loanFirst research yourself. You need to be able to identify bargains and negotiate amounts which require that you know what you can afford and the terminology used in finance matters. If you’ve committed to other kinds of loans, you’re probably aware of loan terminology.

Anyone lending money expresses their concern of risk through the interest rate they apply to the loan. Less trust-worth borrowers get higher interest rates. Make yourself the lowest risk possible. Experian, Equifax and TransUnion are required to give consumers a free copy of their credit history once per year. Get a copy of yours and dispute any mistakes.

Look next to the people that already trust you. Most people will have known their family and friends far longer than any bank branch manager. Many people will not consider borrowing money from family and friends. However, there’s no reason not to if the loan is treated like any other business contract: establish terms and get everything in writing. There’s especially good value here if you can arrange the total loan amount with more than one lender as each of them will risk only a small amount. If you can’t get a full commitment from someone, propose that they cosign if for no other reason than to get a lower rate.

The next source of answers regarding where to get a low interest car loan: your favourite bank. They have the longest financial history with you and can see that you haven’t defaulted on other loans or bounced any cheques. Once they’ve told you their best rate, it always pays to shop around: Consult other banks and credit unions and compare rates. This includes lenders online.

Throughout all this: keep these in your check-list: new-car rates are often the lowest, watch rates throughout the early part of your loan and refinance at a lower rate if you can, keep the loan as short as you can because longer loans have higher rates.

When getting a loan, probably the best way to ensure low interest is to go back in time to fix your credit history and take advantage of opportunities to demonstrate your financial responsibility. Short of that, hopefully you’re reading this early on to set yourself up for an easy search for great interest rates in the future. Whatever you do, always shop around and compare.