Auto Loan Types and RatesWhat auto loan types are out there? Auto loan types include secured, unsecured, direct, indirect, long term and short term. A secured auto loan uses your car as collateral. A direct auto loan is where a bank gives the loan directly to the borrower. An indirect auto loan is sold by a dealer to a third party financial institution that owns the loan contract and collects payments from the borrower. You can usually receive a long-term loan if you purchase a car that is new or only slightly used. On a vehicle that is three years or less you should have no problem getting a long term loan for up to 72 months. Short-term loans are for used vehicles that are 4 years or older and usually available for shorter terms of 24 or 36 months.What factors do interest rates depend on? To name a few would include, credit score, type of vehicle, length of loan, type of loan, leasing versus buying. If you happen to have bad credit or some bad marks on your credit report you can still get a car loan but the interest rates you get will most likely be a lot higher. There are some car loan companies that specialize in high risk car loans and market directly to people that are in a bad place financially. But these high risk dealers are not out just to help the man with bad credit the dealer also gets his cut of the pie, by the consumer paying extreme amounts of interest. You must read the fine print because there is a little known rule called “Rule of 78s.” The Rule of 78s is a mathematical formula that’s makes payoff early a punishment. Which is different from the Simple Interest loan which has no punishment for early pay off. The Rule of 78 is illegal in installment loans of five years or less in 17 states including: Arizona, Michigan, Delaware, Minnesota, Idaho, Nebraska, Iowa, Nevada, Kansas, New Hampshire, Maine, New York, Maryland, Oregon, Massachusetts, South Dakota and Vermont.Some ways of shopping around for good rates are: Online loans, Credit Unions, Dealer auto loans, and Home equity loan.Online Loans allow you to search the competition between different auto loan lenders and providing you with competitive interest rates for your auto loan. Doing it this way you can take your time and not feel pressured to settle on either a vehicle, payment or rate. This way you can compare many different places while sitting in the comfort of your own home.Credit Unions offer simple solution to locate your auto finance rate. It is almost instant approval of auto loans. You do need to be member of specific credit union to get an auto loan through them.Dealer auto loans have been sources of financing your car for a very long time. Dealership loans are very easy to get and takes only in few minutes. However, these loans are usually higher interest rates.Home equity loans offer excellent auto financing options. You provide your home as collateral and receive your vehicle. Interest rates are higher but you get to claim it on your taxes at the end of the year. In order to compare car insurance rates and see if you are paying to much you should check a Car Insurance portal.