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Blacks paid a typical auto loan rate of 7 percent for new cars, compared with a rate of 5 percent for whites in 2004, according to a consumer organization’s analysis of the Federal Reserve Survey of Consumer Finances. That was the most recent survey available.

And blacks were more likely than auto buyers in general to have auto loan rates higher than 15 percent. For used car loans, 27 percent of blacks who buy cars were charged interest rates of 15 percent or more. Blacks were three times as likely as whites — 27 percent to 9 percent — to have auto loan rates at least that high, according to the report released Monday.

Hispanics were paying a typical rate of 5.5 percent for new car loans, while 19 percent of Hispanics had loans for used cars over 15 percent, the analysis found.

Lenders’ suggested quote rates are based largely on the buyer’s credit history, but auto dealers often raise the rate higher than that risk-related rate without discussing the rate with the customer, consumer advocates said. And they question the causes of those rate differences.

"It’s hard to believe that any differences in creditworthiness explain all of these rate gaps," said Stephen Brobeck, executive director of the Consumer Federation of America. "They size you up, the car salesmen and finance and interest guys. They must think African-Americans are more vulnerable to a markup."

But a series of legal actions against auto finance firms seeking fair treatment for minorities could help solve that problem.

"We had 11 lawsuits, the last of the cases settled last month," said Stuart Rossman of the National Consumer Law Center. "We reached a settlement with each of the finance firms. Our cases involved discrimination. We believe the terms of the settlements will eliminate discrimination."

The first of the lawsuits was filed in 1998 in Nashville, Tenn., against General Motors Acceptance Corporation and was settled in 2004. The last settlement became final in April.

The effects of those legal actions may not be known for some time, however.

The National Auto Dealers Association questioned what accounts for the rate differences, but encouraged auto buyers to do their homework before going to buy a car.

"The question that still is unanswered is why," said David Hyatt, a spokesman for the dealer’s association. "People should do their homework and shop around. It speeds up the transaction, makes for a smoother transaction and is more likely to result in a satisfied buyer."

Hyatt said an organization supported by the auto dealers, Americans Well Informed on Automobile Retailing Economics (AWARE), offers tips to potential car buyers.

Chris Stinebert, president and chief executive of the American Financial Services Association, said his group is interested in educating consumers.

"AFSA and its members believe there is no place for discrimination in the vehicle financing system," he said.

The lawsuit settlements against auto finance companies call for caps on dealer markups, opportunities for blacks and Hispanics to get loans with no markups within the next few years, more information about interest rate terms and consumer education for minorities.

"The lower markup caps have leveled the playing field," Rossman said.

Consumer advocates say prospective auto buyers should call their bank or credit union for a rate quote to expect on an auto loan. That could protect them from unfair markups.

Other ways to hold down costs.

_Make all loan payments on time.

_Buy a used car, or a less expensive new car.

_Take out a loan over a shorter time.

The survey of 4,519, including 605 blacks, was analyzed by Catherine Montalto, a consumer specialist at Ohio State University for the Consumer Federation of America. The survey was conducted between May and December of 2004.

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Are you ready for your next vehicle but you want the lowest interest rate on your next auto loan? These are difficult economic times and getting the best deal it is a must, and it’s not just advisable for car loans but other kind of loans as well, as there is no end sight for the recession we are living and we do not know how long it could last, then a lower interest rate over an auto loan, applicable over your next 4-5 years of repayments is quiet important, let see the way you get these cheaper ones.

Firstly, with the advent of internet, researching and comparing different lenders is easier than ever, as matter of fact you can compare different interest rates from several lenders in no time and hassle free. However, during your research, besides writing down interest rates, take notes of additional costs associated with your auto loan, there could be charges hidden that will certainly affect the rate you are being offered.

Secondly, your next auto loan application should be with a direct auto loan lender, you save on commissions and generally direct lenders are the companies offering the lower rates. Plus, direct lender companies have special deal with dealerships, meaning that is much more easier getting your car with a lower price over it. Check out if they have a special car dealers list while at their website.

Thirdly, doing a down payment of as much as you can, this will affect greatly the interest rate that car dealer will offer you, a down payment of 20 per cent or greater will do it pretty well.

Author: Hector Milla

Summing up, by researching and comparing different lenders for your auto loan or auto refinance loan, you will be able to determine, the cheaper interest rate offered, plus the one able to fund cash money as soon as reasonable possible and where you get approved regardless of your credit. However, it is advisable going with a trusted and reputable direct auto loan lender, this way you will save time through an online application and money by getting a lower interest rate. Hopefully you will have your new or used car by tomorrow.

Hector Milla runs the Direct Auto Loan Lenders website, where you can see his best rated auto loan direct lender recommendation – included auto refinance loans – and, the Bad Credit Car Loans resources center.

Find Direct Auto Refinance Loan Lenders reviews and Poor Credit Car Loan advise respectively, visit for further information.

Article Source: http://EzineArticles.com/?expert=Hector_Milla

The Online Auto Loan Advantage

What are the advantages of getting your next auto loan online? Well, the first advantage could be time. You are going to save an ample amount of time by researching your purchase and the intere…

Auto Loan Lowest Rates

There are many car loan applicants who are not aware of their credit score and lands up paying large interest rate, or are connived into paying higher rates. In order to properly…

Many times you feel need to shift over your car loan deal for a better rate of interest, more apt situations and for saving extra money. Car refinance loans help you to save money by paying lower interest rates.

Refinance car loans enable an individual to shift from their high interest car loan deal to comparatively low interest car loan deal. Due to its favorable features, refinance car loans are provided by majority of lenders including banks, financial institutions and various building societies. In addition to above lenders, there are many online lenders that offer refinance car loans on low and better rates.

Refinance car loans can be availed either from the same lender or from different lender. But, the question arises that how refinance car loans work?

When refinance car loan is availed from the same lender
In such case, the lender charges an amount of additional fees from an individual for refinancing the existing car loan amount.

When refinance car loan is availed from another lender
In such case, the new lender pays the pending installment of the initial car loan (old) and replaces it with new loan termed as refinance car loan.

Even an individual with poor credit score can avail refinance car loan. It is quite possible that they are offered with comparatively high rates. But, by means of research, he can avail refinance car loan on competitive rates. However, he must try to make timely repayments of loan in order to improve his credit score.

Before availing loan, he must make sure of certain things, which are as follows:

The lender must be authorized and reputable.

Terms and conditions of the loan must be thoroughly reviewed.

Small prints of the loan must not be ignored.

Research and comparison must be conducted before accepting an offer.

An amount must be borrowed in regard to the repaying ability.

By: HenryBell

Article Directory: http://www.articledashboard.com

Henry Bell is an author who can certainly identify the kind of insurance that you will need.Insuranceb.co.uk endeavors to find the best possible deals for its customers. To find cheapest car loans,refinance car loan,no credit check car loans,easy car loans visit www.onlinecarloans.org.uk

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