The majority of Salem car loans have fixed interest rates that are tied to short-term or intermediate-term government securities called T-bills.
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Remember that dealerships always mark up the market interest rate of the Salem car loan, so your actual rate will be higher.

Salem Car Loans

You have several options to get the car you want, regardless of the interest rate environment. Learn more about Salem car loans and interest rates here.

Zero-percent Oregon car loans usually aren't all they're cracked up to be.

Dealer Financing

The majority of Salem car loans have fixed interest rates that are tied to short-term or intermediate-term government securities called T-bills. These rates usually change whenever the Federal Reserve adjusts interest rates. Rising interest rates mean higher monthly payments on Oregon car loans, and falling interest rates mean the opposite. Remember that dealerships always mark up the market interest rate of the Salem car loan, so your actual rate will be higher. Usually, you can minimize this mark-up by going through a third-party source for Salem car financing instead of through the dealer.

Pre-Approved Oregon Car Loans

One way to get a lower interest rate is to qualify for Salem car loans before you begin car shopping. When you get pre-approved and lock in a fixed interest rate, you will be safe in case interest rates rise while you are shopping for your vehicle. Pre-qualifying for a Salem car loan also puts you in a more favorable position for negotiating a lower interest rate with the dealer. Home Equity Salem Car Loans.

Home Equity Salem Car Loans

Using home equity to get a Salem car loan definitely has certain financial advantages. For example, at the end of 2004, the average interest rate on a home equity loan was 6.9%, whereas the average interest rate for a four-year Oregon car loan was 7.5%. That means that you would save about $270 in interest over the course of the loan by using your home equity. In addition, you would enjoy tax-deductible interest, which could also save you up to hundreds in income taxes. Keep in mind, though, that Oregon car loans that use home equity require you to put your home up as collateral, which is a considerable risk.

0% Financing

Zero-percent Oregon car loans usually aren’t all they’re cracked up to be. For one, only a very small percentage of consumers have the requisite credit to qualify for these loans. Secondly, dealers usually keep the terms of these Salem car loans unusually short (24-36 months), which means your monthly car payments will be through the roof. Finally, 0% financing is usually offered as a trade-off with a cash rebate. You are better off taking the cash rebate and applying it toward an independent Salem car loan from a third-party lender. For more information, please visit our faq page.