The only difference between sealing the deal on your new car or settling for something less can be the interest rate. There are many types of auto loans to choose from, so scout out your options before you settle.
The best advice in a time of accelerating interest rates is locking in on a fixed-rate loan. Though, even these loans can differ depending on the individual. For example, if you are a homeowner you can apply for a home equity loan, which has a lower interest rate than one offered by a dealer. The interest on these types of loans are also usually tax deductible. If you plan ahead before you even go car shopping, you can apply for a pre-qualified loan and receive a better interest rate. This way your fixed interest rate is locked and protected in the event rates rise before you close the deal on your new car.
Other options include dealer financing, zero perecent financing, variable rate loans, and refinancing, which is a smart option if rates are falling.
