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Finding the best auto loan interest rate is one of the most important steps to purchasing a vehicle. This is because the kind of interest rate a person can get on an auto loan will end up determining what kind of car that person can afford. Here are a few tips to use to find the best auto loan rate.

First check your credit score and credit report. Your credit score and credit report are two of the most important pieces of information that a lender will use to determine the interest rate you will be charged. Make sure that all the information on the credit report is correct. Even a small mistake can have a very negative impact on the interest rate you are offered.

Next, decide on the kind of vehicle you want to purchase. With your credit score and some other information, you should be able to use some online tools to get a pretty good idea of the average interest rate you will be charged for a particular vehicle. Only purchase a car that both fulfills your needs and allows you to get a reasonable rate.

Lastly, you must find the best rate. Do your shopping carefully. Try to avoid dealer backed lenders as they are usually more expensive. Instead, visit different banks and credit unions that will offer you better rates.

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14y ago

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