Learn How Car Safety Ratings Effect Loan Rates

So, you've found the car of your dreams and all you need is a loan, right? What about car safety? Do you have children? Have you thought about car seat safety? Is the car going to be safe to use with your family in it? Did you know that used car loans are affected by the car safety ratings of any vehicle? Before you decide that dream car is the right one, stop and take a look at the safety ratings -- they could wind up costing you money in the long run.

How Cars are Tested for Safety

In the United States, cars are tested for car safety through crash tests conduction by the National Highway Traffic Safety Administration. Each vehicle is given a crash test rating of one to five stars. (In other countries the evaluations are called car safety ratings.) These ratings indicate how likely it is for a driver or passenger to die or to be injured if the vehicle is involved in an accident involving a head-on, side, or rear impact collision or a roll over. In a laboratory setting, the vehicles are subjected to simulated collisions with crash dummies placed in the driver and passenger seats. The dummies are outfitted with sensors to record the impact to various parts of the human body and the severity of the physical injury likely to result.

If the vehicle receives a crash rating of five stars, it is considered unlikely that a person involved in an accident while driving or riding in that vehicle will be killed or seriously injured. These tests have been conducted and the resulting information published since the late 1970s and are available for almost all car models. It isn't difficult to obtain the information since car manufacturers recognize the value of the data to their customers and freely advertise superior ratings. (If there is no mention of safety ratings in the sales verbiage for a vehicle, this could be a give-away that something is amiss.) You will probably be able to obtain the crash test data simply by visiting the manufacturer's website and reading the provided material on the car, truck or van in question. If not, consult Consumer Reports or go directly to the NHTSA website.

Ten Safest Vehicles

According to Forbes Autos, the ten safest vehicles are the:

Honda Pilot
Acura RL
Lincoln LS
Volvo S80
Lexus ES 330
Honda Odyssey
Buick Lucerne
Acura TL
Lincoln Town Car
Chrysler 300c/Dodge Charger

If your dream car happens to be on that list, then you know you are getting a safe vehicle. If not, do some research into the car safety ratings of the vehicle you are considering. If the ratings are poor, you may want to rethink your selection.

Continue to: What About Car Seat Safety?