When it comes to financing a new car purchase, most people end up paying too high on interest rates for their car loans. The car loans market is brimming with lenders and a careful selection and smart work in choosing a good deal can help you save in thousands. The increased competition in the market has brought new and attractive deals. A careful analysis of these deals can help you bring down the interest rates.

Here, is how to get low rate car finance:

? Obtain a copy of your credit score from any of the credit agencies. Carefully examine your credit file to find out if it contains any errors. Correct any incorrect information on your credit report. Knowledge about credit score will help you negotiate better with your car loan lender.

? Contact Banks and Credit Unions and obtain their loan quotes before you start visiting car dealers. Most car dealers receive commissions on the loans they finance. If youre not careful, that commission paid to the dealer could mean you pay a higher auto loan interest rate.

? If you have an adverse credit or no credit history you should always try and obtain a car loan from the Bank or Credit Agencies you are currently having a relationship with. If your bank is not willing to provide you loan take the assistance of introducers who have access to multiple lenders. In most cases on line introducers help you find poor credit car loans at lower interest rate than a car dealer.

? Use a loan calculator to estimate what your loan will cost each month. Keep your monthly installment in the range of 10 to 20 per cent of your monthly earning. It saves your time in looking at cars you cant afford to pay for.

? Explore around and compare deals and financing rates from multiple lenders. It is highly improbable to get the best possible car loan by randomly choosing a car loan.

So, the next time you want to avail a car loan, just follow these steps to find a low cost car loan.

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