If you have decided to buy a new car, great! Now is the time to think about how you can get an Car loan with a minimum possible interest rate.

Here are few secrets for getting good interest rates for your Car loan:

1.    Improve your credit:

-Do you have several credit cards in your wallet including the retail shops credit card (Example Kohls, Macys, etc.) which you do not use or use rarely? Well, get rid of them as soon as possible. Your credit rating is dependent upon the total liability you carry, even if you are not using all of it. Call the credit card company and cancel your account. It will take few weeks before this will improve your credit score.

-Pay your bills on time. Even if it is only for $20, please pay them on time. One late payment can bring your score down by 10-30 points!

-Try to pay down your balances to less than 50% of the credit limit.

2.    Make big down payment:

Start saving earlier for the down payment. If you can put 10-20% down, then you will get much better rate. Lenders are more likely to give you favorable terms with a sizeable down payment, because they realize that you are less likely to default on the loan if you may face repossession of a car in which you have made a substantial investment.

3.    Shop around:

With the ease of internet now you can really shop around for the best rate. You can submit for a quote online. You can compare multiple offers and choose a low interest Car loan that meets your needs. To increase the odds of your success in the lowest interest rate possible, shop for rates between lenders and car dealers. Once lenders learn that you out looking for the best deal, it is more likely that they’ll offer you the best rates upfront in order to close a fast deal. If you have a long-standing account with your bank, you might also see if the bank would be willing to waive its requirements. The bank may do this if you can convince the bank that you are likely to repay the loan. Pre-approved Car Loan increases your chances of negotiations on the price of the car once you visit your Car dealership.

4.    Wait and do not rush:

Do not rush to buy the latest model, which are most expensive when recently introduced. The dealerships will not negotiate on a lower interest rate with brand new models and cars as they know that the demand for these vehicles is much higher. It is typical to find low interest rate Car Loan on the cars that are not in great demand. For the hottest car of the month, you should expect to pay a much higher rate of interest.

5.    Buy in off season:

Yes cars also have off seasons! Months between November and December are the best time to buy the cars. The dealer wants to meet their annual target to get additional rebates from the car companies and also want to get rid of previous year cars. They will be more willing to negotiate on the price and the interest rate. The dealers will be eager to sell off the current collection in order to accommodate the new models being acquired. Due to this, incentives on the car price and the rate of interest are increasingly offered to get rid of the older models.

6.    Be wary of high pressure sales tactics.

Do not give in to hard sell tactics by Car dealerships. Be sure you know how much car you need and can afford. Remember that the salesman’s job is not to ensure that you receive a fair deal – his job is to make the sale. Car dealerships are notorious for predatory high interest lending.

7.    Wait for the special offers by the car company:

It is also very often that with one manufacturer offering 0% financing or low interest rate, others quickly do the same. This is when it’s the most opportune time to buy a car making the most of low Car Loan interest rates by the competing manufacturers. Remember though that these offers are restricted only to those with above average credit and the term for the Car Loan is also shorter than the traditional financing. But there’s no denying that you end up with a great deal from your dealer.

With all these guidelines in mind, you shouldn’t have much of a problem in getting low interest rates on Car Loan.