To avail finance at cheap rate of interest, it is necessary to have a good history of credit. This means that you should carry little risks for the lenders. Get copies of your credit-report to make sure that all the payments that you made in the past, have found place in it.

You should know your credit score. If the score has gone down to below 600, on FICO-scale, then improve it by paying off some debts for few months and apply with improved rating.

To ensure low interest rate on car finance, prefer borrowing it against your valued asset like home. If you do not want to put home at stake, then you can pledge the very car as collateral. The lender will possess the deal papers of the car, which will be returned at the time of repaying the loan completely.

Another way for availing the finance at cheap rate of interest is to make greater amount of down payment to the lender. This way, the lender feels safer. You can ensure low rate of interest on making greater down payment, even if you have a history of late payments, arrears, defaults or CCJs. so, before applying for these loans, save money for making the down payment to the lender.

For finding out a suitable deal, make a good comparison of the lenders, who are offering cheap car finance. Besides low rate of interest, you should look for fewer additional fees on such a loan. Make efforts to keep the cost of availing the loan lower.