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Furthermore, if you pay off your pre-computed auto loan early, the lender often uses an outdated and expensive formula known as the rule of 78s to make you pay a large sum of money for paying off the loan early.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


Free Quran in All Languages

Free Tafsir Books

Fast Money: A Guide to Fast Secured Loans

Here is a useful guide to fast secured loans. Here... Read More

Instant Car Loan - Get an Approval Online Quick

Your car loan is now less than an hour away... Read More

Useful Information About Homeowner Loans UK

Homeowner loans UK are a very versatile type of personal... Read More

Payday Loans or Cash Advance Loans - Useful After a Bankruptcy

Payday loans, also known as cash advance, are a useful... Read More

Guide to Home Improvement Loans

Here is a useful guide to Home Improvement Loans. What... Read More

Zero Zero Financing on Automobiles in Retrospect

Some say that the automobile industry saved the economy during... Read More

Navigation After Financial Closure - Bankruptcy Personal Loans

Bankruptcy has a stigma attached to it that is hard... Read More

Getting Good Value Personal Loans

Over recent years, personal loans have become a popular solution... Read More

Get a Low Rate on a Secured Online Loan

Secured loans have become very popular over recent years, with... Read More

The Best Day of The Week For Payday Loans

Whether your payday arrives every Friday or every other Friday,... Read More

What is a Loan?

A loan is money that you borrow and agree to... Read More

Military Payday Loans ? When?s The Best Time To Avail Of These?

What are the opportune times to avail of military payday... Read More

Loans For Unemployed - Employing Home For A Solution To Unemployment

If the statistics for the quarter ended April 2005 are... Read More

Guide to Loan Terms

Listed below is a guide to loan terms. It is... Read More

Secured Holiday Loans- Your Chance To Unwind Your Senses

"All work and no play makes jack a dull boy".The... Read More

Faxless Payday & Cash Advance Loans - Fast Cash, No Faxing Loans, The Easiest Payday Loan Process

If you are in a hurry for a payday loan,... Read More

How to Get a Secured Loan UK

Living in the United Kingdom, you might find yourself in... Read More

Guide to Bad Credit Loans

Here is a useful guide to Bad Credit loans. Bad... Read More

Secured Business Loans ? Equipping Your Business Blueprint With Concrete Groundwork

Somebody once said, 'Business is not financial science; it's about... Read More

Beware of some Get Cash Now Vendors

Some weeks it feels like you're living hand to mouth.... Read More

Securing Debt Consolidation Secured Loans

If you're like most people, then you've got debt in... Read More

Loan Officer Marketing - The Power of Positioning

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

Are You Ready for Your Students Student Loans?

Your son or daughter is a high school senior and... Read More

Bad Credit Loans

Obtaining bad credit loans can be a real challenge. If... Read More

No Income Verification Home Equity Loan

A no income verification home equity loan is a second... Read More