Getting That Car Loan: Simple Interest Is The Best

So here's the situation: you are buying a car but you don't know what type of auto loan offers you should go for. What should you go for?

The answer is simple enough: get a simple interest loan.

What is a simple interest loan anyway?

A simple interest loan is a loan where you pay interest only on the original principal of the loan.

The good thing is, 90% of all auto loan offers are simple interest loans, although there are some lenders who are pushing loans that are not. You should never agree to an auto loan that is not a simple interest loan.

The second thing you DO NOT want on your auto loan is pre-payment penalties. A loan without pre-payment penalties means that the lender will not charge you an extra fee if you pay the loan off early either through refinancing or other means.

Remember that it is always easiest, and refinancing will save you the most money, when a simple interest auto loan with no prepayment penalties is refinanced with another simple interest auto loan at a lower interest rate.

Some lenders offer auto loans that are known as pre-computer loans. Sub prime lenders will often target high risk borrowers with pre-computed auto loans, and some used car dealers might push this type of auto loan financing.

If you sign up for this type of loan, you are legally committed to paying for the full principal balance of the loan as well as the total amount of all interest that would accrue over the life of the loan.

Furthermore, if you pay off your pre-computed auto loan early, the lender often uses an outdated and expensive formula known as the rule of 78s to make you pay a large sum of money for paying off the loan early.

Never go for this type of loans.

Sometimes, the best advice is the hold out for the best offer. If the first lender does not offer a simple interest auto loan with no pre-payment penalties at a reasonable and competitive interest, find another lender who will give you a better price. There are many lenders who are eager to compete for your auto loan financing.

The world has become so small it's a buyer's market. Check out local banks, auto dealers and online resources for the best interest rates with the fewest fees. By thoroughly investigating all of your options, you will definitely get a loan that is perfect for you!

Pete Lance is the founder of http://www.USGasTracker.org, a premier company which helps the consumer save money on gasoline. Thousands of gas stations across the nation are tracked daily to guarantee the lowest prices on gasoline anywhere in the United States. Go get your cheaper gas now! http://www.usgastracker.org

---

Business Loans: If You Know How To Make Good Use Of Money And Expertise

Are their rewards of being your own boss? Yes, in... Read More

How to Make Sure You Become a Profitable Trader

Regardless of your trading style; day trading, swing trading, or... Read More

Short Term Payday Loans - Use One Online To Get Cash Quick

Short term payday loans are now available online. After filling... Read More

The Best Way to a Farm Loan Success

The most important and difficult part in farm mortgage shopping... Read More

Your Home Can Act As Carriage For Car Loans; Do You Know The Term For That? Secured Car Loans

Since the invention of the first self propelled car by... Read More

Seven Tips For Credit-Enhancing Your Business Loan

What are the avenues available to businesses with weak credit... Read More

Finding the Right Online Loan for You

If you're looking for an online loan, you might be... Read More

How to Find Bad Credit Loans UK

Bad credit loans UK can sometimes prove quite difficult to... Read More

Wedding Loans Because Wedding May Be Made In Heaven But They Are Certainly Not Made For Free

Wedding loans because wedding may be made in heaven but... Read More

Quickest Payday Loans - Things To Look For in a Cash Advance Company For The Fastest Loan Processing

To find the quickest payday loans, you need to look... Read More

A Secured Loan Could Save You Money

What is a Secured Loan?A secured loan is any loan... Read More

Getting the Best Auto Loan Rates

Getting a good auto loan rate is not luck, but... Read More

What is a Title Loan?

A title loan is a loan of money secured by... Read More

Payday Loans - Ways to Keep Your Costs Low

Payday loans offer a fast and easy solution to financial... Read More

Bad is the Opposite of Good... Is It? Not with Bad Debt Personal Loans

'Bad' means 'bad' no matter where you go! It is... Read More

Parent Loans or Student Loans ? What is Going to be Best for My Child?

Parent Loans or Student Loans ? what is going to... Read More

Should You Get A Pay Check Advance?

At some point in your working life, you may find... Read More

Instant Payday Loan and Instant Payday Loans

Instant payday loans are financial loans that are available for... Read More

Cosmetic Surgery Loans ? Discovering How It Feels to Look Your Best

Market research of UK's cosmetic surgery ascertains the fact that... Read More

Benefits of an Unsecured Loan

Listed below are some of the benefits of an unsecured... Read More

Should You Get A Pay Day Loan?

Whether you have good credit, bad credit or no credit,... Read More

Why Choose a Personal Loan?

Are you wondering why choose a personal loan? One of... Read More

Student Loans Are The Life Preserver Of The Education System

A loan is the reason many students are able to... Read More

Best Car Loan Rates - Tips To Getting a Low Auto Loan Rate Online

Online car loan shopping practically guarantees that you are getting... Read More

Business Loans from Family - A Good Idea?

Can I Ask my Family for a Loan to Pay... Read More

A Guide to Bad Credit Finance Options

Have you been trying to find out what bad credit... Read More

Loan Officer Marketing - The Power of Positioning

How do you build a marketing strategy that can have... Read More

Guide to Personal Secured Loans

Here is a useful guide to personal secured loans. A... Read More

Boat Loans ? Steering Way Towards a Bon Voyage

In the full moon night, on a lovely morning you... Read More

Shopping for a Payday Loan

You wouldn't consider buying a new pair of shoes, a... Read More

To Find The Right Loan You Must First Find The Right Lender

We have found internet shoppers to be the savviest in... Read More

What are Personal Loans?

As the term implies, Personal loans are simply loans for... Read More

Debt Consolidation Tips

Here are some useful Debt Consolidation tips. Debt consolidation is... Read More