4 Ways to Get the Best Car Loan

Land Rover Range Rover Evoque

Buying a car is an exciting process, even if it isn’t your first time. However, there’s a lot more to getting the best deal than simply finding the lowest price for the make and model of automobile that you want to buy. You need to also find the best car loan possible to maximize your savings.

Avoid Telling Your Salesperson How Much You Want Your Monthly Payment to Be

Auto dealers often ask their customers how much they want to spend on monthly payments. Your answer not only gives the salesperson an idea on how expensive a car to show you, but it also provides an idea on which car loan to offer you.

Auto dealers work with a variety of lenders to find car loans for their customers. Therefore, you might qualify for a number of loans at different percentage rates and terms. If you provide your salesperson with a monthly figure, you might end up paying a higher interest rate than you qualify to receive. After all, the dealer might get a kickback to provide lenders with clients, and some creditors might provide a better incentive than other banks.

Ask Your Local Bank

Most banks also provide automobile loans in addition to other financial products. Talk to a representative at your local branch to find out what type of auto loan you qualify to receive. If possible, get this information in writing and take it with you when you are car shopping. You can use it to persuade the car dealer to at least match the offer.

Compare Total Interest Fees

Make sure that you calculate how much your car loan will cost if you take the entire term to pay it off. The lender can calculate this number for you. The salesperson at the car dealership can also provide you with this information, but you might have to insist on getting it. In general, a loan of three years will cost less in interest charges than a loan of four or five years.

Improve Your Credit Score

Before you begin your search for a car, you should try and improve your credit score so that you qualify for better interest rates. Begin this strategy at least three months in advance, using the following tips:

  1. Pay down your existing loan and credit card balances.
  2. Make all of your payments on time.
  3. Avoid taking on new debts.
  4. Do not sign up for any new credit card accounts.

If you want to save money on the purchase of a car, you need to look for a good sale or special deal that lowers your purchase price. You also need to obtain a car loan with agreeable interest rates. Fortunately, you can do both if you shop around before you agree to purchase a vehicle.

 


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Auto dealers work with a variety of lenders to find the best car loans for their customers. Learn more: http://phau.us/ll34

— Products shown: Shop for Used Cars | PhillyAuto.com and Get Pre-approved Today!

Posted by Philly Auto on Wednesday, March 28, 2018

 

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