When buying a car, whether it’s new or used, securing a loan is often a necessary step. Understanding how to compare car loan interest rates from different lenders is crucial to ensure you get the best deal possible. With various options like banks, credit unions, and loan apps, navigating the world of car loans can seem daunting. However, by following a few simple steps, you can find the car loan that suits your needs and budget.

1. Understand the Basics of Car Loan Interest Rates

Before diving into comparisons, it’s essential to understand what a car loan interest rate is. The interest rate is the percentage of the loan amount that you’ll pay in addition to the principal over time.