LYCOS RETRIEVER 
Car Financing: Interest Rates
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Car Dealer Financing is fast becoming the preferred way to find car financing. In recent years, dealerships have streamlined the car finance process, as well as made bad credit auto financing more easily available by implementing "Buy Here, Pay Here" programs. In addition, it is not uncommon these days to see interest rates and other financing costs being much lower at a dealer than at a bank. It may seem hard to believe, but it proves true every day.
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The Best Interest Rates and Financing Terms – SmartCarFinder dealers periodically offer low interest rate incentives from the auto manufacturer that local banks cannot. Even with past credit problems. For instance, most captive finance companies are now, or have in recent times, offered interest rates as low as 0%, 1.0%, 2.9%, or 3.9% for new autos. It's hard to beat those interest rates no matter how long you shop around.
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In the car business dealer financing is known as Retail Installment Sales Contracts (or RISC's for short, an appropriate acronym). The dealer signs the RISC's with you, then sells it to a bank or other lender. Sometimes they participate in the low apr interest rate, so the higher the APR (annual percentage rate) they can charge you the more money they get. Dealer used car financing is just something else that dealers "sell" you, by going to an outside lending place you are cutting out the middleman (the dealer) and not paying any more than you have to for used car financing.
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Get an online commitment for car financing before you arrive at the dealership to maximize your bargaining power. Once you negotiate the price of a car, you will have a choice between buying with cash or telling the dealer, "Here is the interest rate you will have to match."
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The thing you have to keep in mind is money down on a car with a competitive interest rate can sometimes beat the price of a deal with 0% financing. It cannot be stressed enough to do your own calculations before making any decisions.
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Check on your credit score before you seek out online car financing, just as you would before trying to get car financing from a dealership. Take any steps you can to strengthen your credit score, because a higher score will qualify you for more favorable terms and interest rates.
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