The Smart Way To Finance a Car or Truck
6 Key Tips to Get the Best Financing
You know the story: You want a new car, but you don’t have the cash to pay for it. What you need is auto financing.
However, you shouldn’t just settle for the first loan offer that comes along. Instead, check out these six tips for finding the best deals on new car loans.
Learn Your Score
What’s your credit rating? If you don’t know, now is the time to figure it out. The better your credit score, the better your rate for new car loans will likely be. Remember, you have the right to get one free credit report every year.
Be Honest With Yourself
Don’t try to buy more car than you can really afford. Set a budget and then make a pledge to yourself that you’ll stick to it. If you finance more than what you can reasonably repay, you’ll probably end up kicking yourself for years to come.
See if You Qualify for an Auto Loan Here
Shop Online
The dealership might not be your best source for new car loans. In fact, you may be able to find the best deals with just a few clicks of your mouse. Online lenders often offer the best rates, especially for consumers with shaky credit.
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Compare Rates
The first loan for which you qualify won’t necessarily be the best one. Take a look at a few different offers before you commit to one. Compare the term length of the loans, their interest rates, and the fine print.
Get a Free Auto Loan Quote Here
Go for a Shorter Term Loan
Just because a lender is willing to give you a seven-year loan, it doesn’t mean that you should take it. The less time you take repaying a vehicle loan, the less you’ll pay in interest. While your monthly payments will be higher with a three-year loan, you’ll save money in the long run.
Make a Down Payment
Even though you’re getting a loan, you shouldn’t leave the dealership without handing over some cash. The value of a new car depreciates as soon as you drive off the lot, but making a down payment keeps you from being underwater on your loan. Aim for a 20 percent down payment.
When you’re ready for a new car, don’t head straight to the dealership. Instead, find a great option for auto financing first. Once you have that taken care of, you’ll be ready to start shopping for your new set of wheels.