The most important detail for car loans is the interest rates that are being offered in the market. Today there are numerous banks and financial Buying a car is an exciting time in any person's life, more so if this is your first. car. So you may think that knowing which car you want and applying for a loan is all there is to it. But hold on for just a minute. Car loans are a financial commitment that is expected to last a long time, until the loan is paid off. Usually a car loan has a term period of five to seven years. It is vital that you think through all the details regarding car loans before you make up your mind institutions that offer car loans and are willing to provide customers competitive rates. A difference of even .25% in the interest rates can make a large difference to the amount you will be paying for your car. Thus it is a good idea to consider a few car loan interest rates before you decide on the bank or financial institution that you wish to borrow from. you may want to use a good car loan broker to asist. It is a good idea to use a car loan calculator, available on websites of most banks and financial institutions. These will help you calculate how much loan you can take and how much the rate of interest will cost you. By making a substantial down payment you may be able to get better car loans interest rates. Whether the interest rates are fixed or variable will also affect the amount of money you will be repaying. The model of a car may also influence the interest you pay on the car loan. The latest model of a car may be charged a higher rate of interest than one that is relatively older. If you have a bad credit score you may be offered car loans at higher interest rates, as the lenders think that they are taking a bigger risk by lending you the money. It may be a good idea to improve your credit rating and then apply for a car loan.