How to Figure Out What Kind of Interest You are Going to Get in a New Car Loan

It is difficult to guess what interest rate you will get with a new car loan. If you go through the manufacturer's bank for incentive rates, such as 0, 1.9, 2.9 or 3.9 percent, you will either qualify or you will not. Traditional lenders use a tier scale, meaning your credit score and credit history, amongst other qualifying information, will be used to determine which rate you will get, which is not always the lowest rate advertised. It is advisable to obtain a preapproval before you shop for a new car so you know your interest rate.

Instructions

Manufacturer Financing

1

Go to the manufacturer's website of the new car you wish to purchase to view the month's incentive rates for new cars. The manufacturer's offer is often impossible for traditional lenders to beat.

2

Click on an option to visit the manufacturer's financial website to apply for the special interest rate you found, if any. Supply your credit information in the spaces provided and submit the application.

3

Wait for your preapproval. Depending on the bank, your approval may be instant, or you may receive a phone call or email with more information. If you are approved, you certainly qualify for the lowest-advertised manufacturer rate.

4

Keep your preapproval information with you for shopping. If you did get approved for low-rate financing, you can assume you will also qualify for other special interest rate offers, as well.

Traditional Lenders

5

Go to the Web pages of local banks or call to ask about interest rates. Once you've found a competitive rate, which you can gauge after viewing various lender offers, call or stop in to apply for preapproval.

6

Have any new car vehicle information handy to apply for preapproval. You'll need year, make, model and level information. Provide your credit and vehicle information to the bank representative to start your application.

7

Wait for your approval. The amount of time you'll wait for notification varies by lender, but some may require up to a week to provide your rate and approval.