How to Benefit From Low Car Loan Rates
The recession prevalent in the economy has affected the auto market to a great extent, and the car sales have dropped significantly, which has resulted in a reduction of car loan rates and car prices. Therefore, individuals planning to buy a car can avail good auto deals for both new as well as used cars. The present time and market conditions are ideal for buying a car, and it is possible for the prospective car buyer to avail additional benefits and price reduction, if he or she is aware of a few facts which can prove to be quite beneficial. The article narrates some of the offers which can help you reduce your car loan interest rates:
Special discounted rates for fuel efficient vehicles
It is possible to get a rebate or a discounted rate if you plan to finance a fuel efficient car or vehicle. The federal government is actively promoting and encouraging the car buyers to go in for the types of vehicles that consume less fuel, and thereby reduce the drain on natural oil reserves.
The government has also set up a program called “Eco-Friendly AUTO Rebate Program” which offers a rebate between $1,000 to $2,000 for the purchase or a lease of environment friendly and fuel efficient vehicles.
Car dealers support this initiative by providing low car finance rates. Other credit lending programs such as Fuel Smart Auto Loan actively support eco-friendly approach in car buying, and also help out with the car leasing activities so that people can fulfill their temporary conveyance needs.
Special price benefits to students through student car financing programs
If you are a college students currently studying for a diploma, or undertaking some graduation course, it is possible to get special car loan rates for the new or used vehicle you desire to buy. Some of the auto manufacturers like Ford, GM, Mazda, and Hyundai offer discount programs in addition to the standard discounts and rebates generally offered to the students, if they decide to buy a new car. In addition, many money lenders and credit institutions offer cash rebates, highly affordable interest rates, down payment waiver, and even flexible paying terms in their car financing rate for both new and used cars. Generally a credit history check is not required for availing a student car loans at low interest rate.
Benefits offered to military personnel through military car loans
It is good news for individuals working in the armed forces. Both the federal as well as the state governments offer several facilities by which armed forces personnel can avail vehicle loans with lower interest rate. The government subsidizes the loan provided to defense personnel by the lenders and banks, to make it possible for the applicants to benefit by paying lower interest rates, as well as support reduced monthly payments for the loan redemption. It is not required to have a fixed residence to avail a military loan, and even freshly joined personnel can avail the loan benefits.
A word of caution for the citizens in minority
If you belong to a minority group of citizens, or happen to be of Hispanic or African American origin, according to the Consumer Federation of America or the CFA, you might end up paying more while buying your car. As per the reports, on an average African Americans have paid approximately 15% rate of interest for their auto loans, while Hispanics have paid even more than that, which is much above the normal rates of interest charged from the others. So if you belong to the minority group or have a Hispanic origin, it is important to know your constitutional rights and make sure you pay the normal rate of interest for your loans.