How to Compare Green Car Loans

Green car loans are also called the Fuel Smart Auto Loan program and are the latest incentive to encourage individuals to purchase more fuel efficient cars or cars that use alternative fuels.

The first thing you need to know about purchasing a car through this loan program is whether or not the car you are interested in purchasing qualifies under the program. Go to Fuel Economy.gov and look the car up. Only cars that have 30 mpg or better or are hybrid or alternative fuel cars qualify.

If the car you want to purchase qualifies, then the best place to compare green car loans is through either applying with an online car loan clearinghouse or with several different lenders. One such loan clearinghouse that specifically advertises this kind of loan is Rapid Car Loans. However, the loan program is not limited to any specific lender or dealership, so you can approach any lender and ask about their program. Under the terms of the program, a discount of .30% is applied to the car loan rate. As a result, borrowers realize a discount on their monthly payments.

If you use a loan clearinghouse, then you will receive multiple offers from lenders, usually via email or the telephone. Make sure to ask about the Fuel Smart Auto Loan program. Compare the length of the loan, the new car loan interest rate, the monthly payment amount and anything that might be included in the loan (insurance, fees, annual registration, etc).

The Fuel Smart Auto Loan program is an excellent option for individuals who are considering purchasing a fuel efficient car or a hybrid car.