What determines car loan interest rates?
The rates for car loans are mainly determined by two main factors. These are the amount, which is borrowed, and the duration of the car loan. Going for a long-term loan will mean lower interest rates. However, you might end up paying a lot more for the loan than someone who opts for short-term repayment. Although these two are usual points, the task of calculating how much to apply for and how long it will take to repay is usually a hard task. Apart from the amount or duration, the interest rates will also be determined by the kind of vehicle that you intend to purchase. Most of the banking institutions will charge a higher rate to finance a used car compared to the new ones. Another common determinant of the loan interest is the vehicle source. For instance if you plan to buy an imported used car, the financial institutions will either charge very high interest rates or subject you to rigorous procedures when applying for such a loan. In such a case, the best alternative would be to g
