A car loan gets you the money you need to buy the car you want or the transportation you need. With the Internet, researching different makes and models is easy. And more people are doing their research before settling on a particular car. Unfortunately, they don’t take the same time with finding the right financing. By carefully researching your auto loan financing options before heading out the door, you can save yourself a lot of headaches and possibly a lot of money, too!
Before you Start
Before you start your search for the best financing rate, know your credit score. Anyone can easily check their score and ask for a copy of the report. Once you know your score you are better equipped to negotiate a good rate. But, first make sure the report is accurate. If you see any errors or omissions, have the agency fix it immediately.
Securing a Loan
Securing a loan through your bank or credit union involves more work. That is why many people prefer to let the dealer handle the financing. The dealer, in most cases, uses a regular bank. The only difference is they work on your behalf instead of you going in and doing the negotiations yourself. Also, the dealer does not do this for free. You might not even think about the additional fees and charges, but look closely, you could save yourself a lot of money. Not only are there fees and charges, the dealer may actually hide the true price of vehicle somewhere in the fine print.
Get Pre-Approved
Experts will tell you the best car loan rates are offered by banks and credit unions, not dealers. Plus, when you obtains your auto financing on your own, you can walk into the dealership as a cash buyer. This eliminates the financing end of negotiations altogether. With online services, you can quickly compare rates of several lenders at the same time. In many cases you will get an online response to your application within an hour. If you are approved you will essentially receive a blank check, but you don’t have to use the full amount! Only take what you need.