You know you want to buy a new vehicle, but you’re not sure how to get the best financing? On top of that if you have bad credit, maybe you should look at how you can repair your credit score in 30 days! Here are some tips on finding the best auto loan with the best interest rates.
• Watch out for special deals that look too good to be true. If the loan says you don’t need to make any payments for the first year, check out what the payments will be like in year two and beyond. Calculate out what you’ll end up paying in the end once all the financing, fees, and interest has been totaled – and see if that amazing deal is nearly as good as it looks to be.
• Watch out for rebates. While money in your pocket is always a good thing, it’s not so great if it means you’ll pay more on that loan in the long run. If the choice is between a rebate and a lower interest rate on the life of the loan, you’ll want to run the numbers on both situations and choose the one that saves you money in the end.
• If you have an excellent credit score, use it to your advantage. Pull out the big guns and ask for both a rebate and a low interest rate on the loan. You are always entitled to the manufacturer’s rebate, but if your credit score is great, you may get even better rebates and a better loan. Know your credit score and flaunt it!
Watch This Video On Improving Your Credit Score
• Look for lenders before you even get to the dealership. Shop for a loan on the internet, then offer to use your own financing through the lender you found or ask them to match the financing deal you found. Make sure you bring along whatever information is needed from the deal you found online.
• If none of the financing options you find look appealing, consider using your home equity line of credit to finance part or all of your auto purchase. By putting your vehicle on your home equity line of credit, you get to deduct the amount of interest you pay from your taxable income. This also protects you from any penalties, fees, and hidden costs in an auto loan.
• Make sure you ask the right questions and understand exactly what loan is being offered. Is it an adjustable rate loan? Will your interest rate vary over time? What is the limit, or cap, on the interest rate of the loan? Make sure you understand exactly what you will be held responsible for before you sign.
• Don’t be afraid to walk away. If a dealer can’t offer you adequate financing at a decent rate, check out your other options.
• Consider buying your car online directly from the dealer, using a loan you found online. You can order the exact vehicle you want – down to the customized options – and use your own financing with this option. You may save money and get exactly the car you want.