Negotiating for the best rate on car loans is only half of the story, you also need some good tools to make good on the deal. Following, we are giving you some pointers that will help you get the best deal on your auto loan for real. So make sure you follow these tips with attention to detail!
Shop for loans Separately
Before you finalize the deal on your car, you need to get started with the loan process including a credit union, ban, lenders, and even insurance companies. The fact is, online banks are known for providing the best options in auto leasing. Little banks are competitive, and they offer higher premiums. You have to get a pre-qualification for your loan, this grants you a blank check limited to a specified amount. Once you have a good contract, you are presented with even better offers. Don’t mix it with the car.
Also read: Is Plain Green Loan a PayDay Loan?
Make A Two-Week Plan
Every time you opt for a loan, your credit score drops despite if it gets approved or you use it. Doing this will make it hard for you to get a loan at the prime rate, but if you manage to pull the whole damn thing in two weeks, it will be considered as one inquiry, and you will have better options.
Know Your Credit History
Get a copy of your credit report, and learn your exact credit score. You can order them for a small fee. You need to make sure you have a positive score if you want a good interest rate. Don’t think that car loans and mortgage are same. There is a significant difference between these, and have different rates. So be careful.
Get A Total Loan Amount, Not Just the Installments
The only time you should worry about your monthly installment is how much you are willing to spend on your car. Once you have done this, don’t focus on the monthly payment. Some lenders exclusively focus on monthly payments, so you borrow more. This way, you will end up paying a high interest, with more installments.
When it comes to car loans, don’t assume the best. Lenders don’t offer you the best rate for which you qualify; they have a percentage of profit they need to make according to the car, and its condition. Therefore, you should always let your lender know you are shopping around, or have a better offer. This way, you will end up getting a better rate. You need to shop around to get the best options.
Get the right Tools
You need to get your hands on a super low financing cash rebate. You can get it if you have a car rebate vs. low-interest calculator. With this, you will know which is the better deal; it always ends up being the latter.
Recheck the numbers
If your monthly payment is something different from what you concluded, then your current terms are not what you originally agreed upon. The lender has made some changes without you knowing it.