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Car Loans – How Do I Find the Best Percentage Rate?

girl cheerig with joy in front of her car

There are lots of options out there when attempting to finance your auto loan. But before you even begin, remember the rate you purchase the car at will have a huge bearing on its overall cost. The best way to go about finding your perfect car is to start with a clear plan.

Check Your Credit Report

Before going any further check your credit as your history will have a great influence on the whole process. You can get a free copy of your credit report at any time by going to AnnualCreditReport.com. here you’ll find your FICO score or you can even use a FICO score estimator to give you a guide. This can save much heartache later on – you may even be able to take steps to improve your rating.

Work Out a Budget

This is largely common sense but you need to work out how much you can comfortably afford to pay each month. The length of the loan is important and all also take into account all the other extra costs associated with motoring. You should really be able to break all of the costs down into a monthly average.

Carry Out Your Research

Carry out some research before purchasing a car

Ensure you leave no stone unturned and look around the internet for the best dealers. Take a close look at the many options available to you. Make a note of the auto dealers you’re really interested in and take time to use top auto loan calculators. Check out www.cars.com – www.bankrate.com – www.usbank.com for more information.

ALSO REMEMBER A PERSONAL LOAN MIGHT EVEN BE ABLE TO HELP YOU BETTER – AMERICAN BANKS DO A GREAT TRADE IN PROVIDING LOANS FOR THE MOTOR MARKET!! CREDIT UNIONS CAN ALSO BE A BIG HELP!

Shop Around for Your Deal

The fun bit – give yourself a time limit as there will be a point where you have to go and make a final decision. But check out each option left open to you.

Are There Alternatives?

If you enjoy driving the newest models and clock up less than 15,000 miles each year then leasing a car might be a better option. You agree to make monthly payments for a given schedule and at the end of this time you can either buy the car outright, keep it or change it for a new one. There are lots of lease companies out there so take a good look around.

Auto Loan Top?

If you can line up car financing before you actually go shopping for a vehicle then you have real power to your elbow. You can negotiate the very best possible deal and even challenge a dealer to come up with a better rate. If they want a sale they’ll go out of their way to accommodate you.

What If My Credit Rating is Low?

Girl Showing her car keys

A history of bad credit won’t necessarily stop you from getting a car or truck. Car sales never seem to be grossly affected regardless of other financial problems going on in the world. It’s very possible to get a vehicle without too many problems. In fact there are many dealers specialising in those who have bad credit. Interest rates in all honesty will generally be higher but there’s a solution for everyone. Again shop around as much as possible as even bankruptcy won’t be a hurdle that can’t be overcome. Use a car loan calculator.

Notes

Ensure you have the right documentation to hand as auto loan dealers will require a valid drivers’ license. They’ll also need proof of employment and details to prove your identity. You should go into a dealership knowing what your absolute maximum price will be – never let the sales person get you to go over that mark. Don’t reveal what your maximum figure is!

Even if you put forward a high price, it’s the salesperson’s job to try to “bump” this up. It’s best to start low and work up to what you feel is a comfortable figure and not the salespersons “best price.” Remember, you’re the one in charge and they want your custom.

‘Follow all of these things well and you should eventually be driving home the vehicle that’s just right for you. You should also have the perfect auto loan – happy motoring!’

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