Did you know that most
people pay hundreds or thousands of dollars more on auto loans than they
have to? Get an auto loan the smart way. Read on.
Most people really get taken for a ride on their auto loan. Did you know
that differences in the total cost of different auto loans can run into a
thousand dollars or more? Here’s how you can get the lowest rate:
Make a list of different auto loan lenders and their interest rates and
terms, before you go to the dealer (the web is usually the easiest way to
do that). Did you know dealers get a commission on the loans they refer?
If you’re not careful, that extra bit of money for the lender could mean
you pay a higher rate than you would if you got the loan yourself.
Get a credit report and figure out your FICO scores. Removing any
incorrect negative information from your report will help you get a better
deal. Knowing exactly what your score is will help you figure out what
interest rate you can realistically get.
Have bad credit? Try going to your credit union, bank or another
institution where you have a relationship. Lenders like to help out
established customers. If your bank still won’t help, online "bad credit
auto loan" lenders usually offer better less expensive loans than dealers
who advertise their great deals for people with poor credit.
Use a vehicle loan calculator. It will tell you what your loan will cost
each month. It saves you the time of looking at vehicles you can’t afford,
makes you aware of what information you’ll need to apply for a loan, and
is a "reality check" of your financial condition.
Comparison shop, comparison shop, comparison shop. You don’t get the least
expensive car by choosing a dealer at random, and you won’t get the least
expensive auto loan that way, either.
