What else should I look other than the lowest interest rate?

Look for more than rates

When shopping around for a car loan you may find yourself consumed with finding the lowest auto loan interest rates possible. Keep in mind, however, that there is more to a good loan than just the interest rate.

You don’t want to be lured into a particular car loan because you are blinded by an attractive interest rate only to later discover that the lender tacks on various fees and insurance coverage that makes the loan more expensive. There are certain terms that you should be on the lookout for when you apply for a car loan.

Any time you see the words “insurance” or “protection” accompanied by a dollar figure, you should ask for clarification because this can be a lender’s way of tacking on unneeded coverage in order to get more money.

Also look for the term “prepayment penalty” on the loan paperwork, because this means that you will be charged a fee if you pay the loan off early or refinance the loan.

Take a look at the fees that would be associated with late payments and other aspects of the loan, and be sure that the low interest rate you are receiving isn’t going to be overshadowed by other costs associated with the car loan.