How To Get The Best Deal On A Car Loan
Getting a good deal on the purchase of a new car is only half of the battle. To get the best deal overall, you will need to secure a good car loan as well. Getting a good auto loan can be tricky if you don’t know what you are doing. Thankfully, there are many tips that anyone can use in order to get the best deal they possibly can. Below are some of the top tips to consider in advance before you get started on your loan and car shopping.
Shop For Car Loan Separately
Before beginning the car shopping process, it is always best to have your loan secured beforehand. Knowing exactly how much you have to spend ahead of time will give you the best advantage to negotiating yourself a great deal with the seller. Start early and begin applying for auto loans with your local banks, credit unions and reputable online loan lenders. Some people are even able to get good loan deals through their car insurance companies. It is in your best interest to get approval for a Car Loans at Stratton Finance before even stepping onto a car lot.
Don’t Loan Shop All At Once
Each time that you apply for a car loan, even if you are approved, you will make your credit score go slightly down. This can make it difficult to get a great deal on future loans that you apply for. When shopping for new auto loans, try and do them all within a two-week period of time. All applications within this time frame will only count as a single inquiry.
Familiarize Yourself With Your Credit Score
To have a better chance at scoring a great deal on a car loan, you will need to know what kind of credit score you are working with. You are able to get your free credit report from the top three reporting agencies once per year. You should look over each of them carefully before applying for loans to see if there are any errors or inaccuracies which could hurt your chances of getting approved for loans. Get anything fixed that needs to be before applying for your car loans.
Shop For Total Loan Amount
When most people are car and loan shopping, they tend to pay more attention to how much the monthly payments are going to be. The only time this should be considered is when you are calculating it in private. When you tell a lender or car dealer how much you want to pay per month, they will just find ways to get you extended loans and have you spending much more overall on a car than you will want to. This is a technique that they use to get you to spend more on a vehicle. The reason lenders do this is because they want you to end up spending more money on interest.
Don’t Assume Your Offer Is The Best
No lender is obligated to offer you the best rate in which you qualify for. They are in the business of making money off of you and the best way they do this is by getting the most interest they can off of your loan. When shopping for a car loan, let lenders know what you want and tell them you have other offers on the table. This is the best way to get a better rate. Additionally, you can check online for current auto loan rates to compare.