Everyone wants auto loans with low interest rates. Depending on how long your loan lasts and how much your car cost, you can end up spending thousands on interest alone. Some of the most important factors determining the annual percentage rate (APR) on your auto loan are; where you get your loan, your credit history, whether you are getting a new or used car, and how long the term of your auto loan is. Read on for more money-saving information!

There are a variety of sources you can get auto loans from. It is possible to have auto loans financed by a bank, a credit union, a home equity loan, or the dealership your car comes from. It is even possible to finance via credit card, but avoid doing this since credit card rates are higher than your other options. Home equity loans or lines of credit often offer the lowest APRs, and they are tax deductible, so this may be a good option for people who own homes and have built up enough equity.

Credit unions and banks also finance auto loans, and of the two, credit unions generally offer lower rates on auto loans. Auto loans from your dealership or manufacturer will usually have the highest rate, but there are exceptions. Make sure you have done adequate comparison shopping for auto loans, a little time may save you a lot of money! Look online for rate information specific to the kind of car and length of loan you want. When you talk to your bank/credit union about their rates for auto loans, if you have gotten better offers online, say so. They may be willing to undercut the offer.

Your credit history will also determine the kind of rate you can get on auto loans. While shopping for auto loans, knowing your credit will enable you to get more accurate rate estimates, so check your credit beforehand. The three major national credit bureaus are; Equifax, Experian, and TransUnion. To get your credit score, call the credit bureau or look for them online. Credit checks are not free and generally cost about $7 a report, depending on your location, but it's worth it to be well-informed.

When deciding whether to buy a new or used car, take into account that the interest rate is lower on auto loans for new cars. In fact, the rate for a 48 month loan on a new car is significantly lower than the rate for a 36 month loan on a used car. Although you will pay more for a new car, you may save enough on interest to make it worth it. New cars can also get longer auto loans, resulting in lower payments for you.

The term of the loan will affect its interest rate, but not as much as the other factors. Shorter auto loans get lower interest rates, but the differences are not as dramatic as the difference in rates between new and used auto loans. Most auto loans range in length from 36 to 72 months, and the rate difference between these is only a fraction of a percentage.

Making larger down payments will shorten the term and cost of auto loans, thereby cutting down on the amount of interest you end up paying, but only do this if you can afford it, it is not worth getting behind on your other bills.

Finally, know what you are getting. Read your contract and make sure you understand the terms of the loan before you sign it. Make sure you ask any questions you have before you sign, not after. Auto loans vary, and they require financial commitment, so be sure you are adequately informed.