Most people don’t realize that negotiating a good deal on the purchase price of a new car is just half of the battle to getting the best deal overall. To truly get the best deal, you will also need to get a good deal on an auto loan. There are many ways to get a great deal for yourself. One such way is to ensure you choose a good auto loan lender to work with such as the lender found at www.autoloans.ca. To visit the lender online, go here for more information. Below are some other great tips on how to secure yourself the best possible deal on an auto loan.
Shop For Auto Loan Separately
One of the first and most important steps to getting yourself a good deal is by shopping for your auto loan separately from your car. Before you head to a car lot and start looking for a car to negotiate on, you need to know what you have to offer in terms of a loan. The best thing to do is visit a local bank, credit union or online lender and try to get pre-qualified for your car loan. After getting pre-qualified, you will be able to go to a car lot and have an easier time negotiating with them because you are already secured with financing.
Know Your Credit History
This tip should probably be the first one you use. To get the best deal on a pre-qualified loan, you should make sure your credit score is the best it can be. Always do a quick check of your score before heading to a lender. In some cases, you might find some discrepancies or accounts that are not yours and may be lowering your score. This could result in you not being able to get a better deal on your loan.
Get Car Shopping Done In Less Than Two Weeks
Each time you apply for a loan, whether it gets approved and whether or not you use it, your credit score will temporarily go down a little. If you decide not to use the loan offer and want to reapply again soon, your scores might get you less desirable loan terms. However, if you apply and finish all of your applications within a two-week window, they will all only count as a single inquiry.
Shop With Total Cost In Mind
More often than not, car shoppers will base their decisions on how much they can afford each month. The only time auto shoppers should consider the amount of the monthly payment is when they are privately calculating what they can afford in their monthly budgets. However, this is not something you should ever discuss with lenders or at a dealership. Some shady lenders might take that monthly budget number and use it to get you to borrow more loan funds by simply extending the amount of payments you make. This can result in you paying much more interest on your car loan and you will end up paying on a longer loan term while still driving an aging vehicle.
Do Not Assume The Best With Lenders
Even if you have the best credit score and a good income, creditors and lenders are not obligated to offer you the best rates in which you actually qualify for. Lenders are in the business of making money. They have to be asked for the best rates that they can offer from the borrower. In order to get a better deal, let a lender know that you are shopping around. If you already have another offer from a lender, show it to another lender and they might offer you a better deal and rate on the same loan. Lenders can be very competitive when they want your business.
Use The Right Tools And Investigate
Many lenders will offer different kinds of deals and rebates on their loans for car buyers. It can be difficult to know which deal will be best for you. Some deals might include ones such as extra-low financing and cash rebates. Choosing the best deal for you could be as simple as calculating which saves you the most money overall on your purchase. When comparing different rebates on your new auto loan, make sure to completely read and understand the fine print. Never rely on an oral promise from a lender or dealership. They can be hard or impossible to get enforced.
Avoid Financing That Is Conditional
It is always best to not take a car from a dealership unless everything is completely finalized. This should include everything from the down payment amount and monthly payment amounts to the interest rate and the length of the loan. If you leave the lot with a car that has “conditional” or “contingent” loan terms, the lender will be able to change them later on and you may get stuck with loan terms that you are not happy about.
Searching for and purchasing a new vehicle can be a lot of fun. However, to get a great deal and not have to spend more than you are budgeted for, it takes a lot of hard work and due diligence. Some research and a little time comparing lenders will make the process much easier and get you the best deal possible on the car you want.
Latest posts by Will Hopstetter (see all)
- Auto Business Management Doesn’t Have to Be Hard: Read These Tips - October 2, 2022
- What to Do as Soon as You Get a DUI? - September 27, 2022