federal reserve

8 things you should know before the Fed hikes interest rates

Consider a car loan before rates jump
Consider a car loan before rates jump | Roberto Machado Noa/Getty Images

Consider a car loan before rates jump

Although it isn't a direct relationship, a low federal funds rate does help keep interest rates for auto loans low.

Interest rates for auto loans also depend on factors such as your credit score, the price of the car and the overall terms of the car sale.

Rather than shopping for cars based on interest rates, figure out what you can afford each month.

Experts recommend: Finance that car purchase now, before rates rise, but only if buying a vehicle fits into your larger financial picture. Also weigh factors such as the down payment and maintaining a good credit score to keep your loan amount lower.

Compare auto loan rates in your area.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
advertisement
advertisement

Connect with us