Warning about car dealer low APR new car financing, few people qualify

Estimates show that as few as 7% of you will qualify for those low APR new car auto loan rates we see advertised by car manufacturers. Some low APR car loans require a credit score over 700 to get that rate, and most require 36 months to pay off the loan. Many of you cannot pay off the auto loan in 36 months, so you may be forced to pass on the deal.

New car dealer financing is just a product the dealer sells you. Is it an auto loan or not a auto loan?

New car loans at the dealer are not really new car loans, nor used car loans. They are Retail Installment Sales Contracts (RISCs). Great acronym. The dealer sells the RISC to a bank, often sharing interest rates, so the higher APR they charge you, the more money they make. Unless there is a subsidized low APR from the car maker, you'll usually find lower online car loan interest rates at online new car financing sites like Capital One Auto Finance or E-LOAN. Now you have lower online auto loan rates. In the 1990s, we HAD to get our auto financing at the dealer. New car financing is just a product the dealer sells you. You don't have to buy their convenient product anymore. You should never put yourself in a position where you rely on a new car dealer to tell you how good your credit is, you should be telling yourself instead by understanding your own credit report. This way you avoid their bad credit auto loans. Subject to new car finance.