If you are currently in the market for an auto loan, you will certainly want to make a point of learning all the helpful tips you can. These tips will help you to save a significant amount of money on your auto loan. The fact is that most people pay far too much for these loans, so you will therefore need to make sure that you do everything you can to avoid getting ripped off. Those who take the time to get this very valuable information will end up with a great deal on the car loan they need.
Find a Reputable Lender
It is crucial that you find a reputable lender to borrow from, because otherwise you are going to regret it later on. There are lots of different places that you can go for an auto loan, but you don’t want to trust just anyone. You must keep in mind that the lender you choose will determine a number of things, including the interest rate you pay as well as other important terms. The more time you spend looking for the right lender, the better off you are going to be in the long term.
Don’t shop for a loan for more than two weeks
You should also keep in mind that your credit score is going to take it a small hit every single time you apply for an auto loan, so you will want to limit the number of applications you submit. Don’t take more than two weeks to shop around for the best loan, because it could damage your credit in a very significant way.
Get familiar with your credit history
The fact is that your credit is going to play a major role in whether or not you get approved for an auto loan as well as what your interest rate will be, so you’ll need to get familiar with it quick. Most people don’t even know what their own credit is like, but you will need to make a point of checking yours. While you may have to pay a small fee to get a copy of your credit reports, it is well worth it. Make sure that you look for any mistakes or errors on your credit report, as there are sometimes things that shouldn’t be there. By doing this you could potentially increase your credit score!
Compare the total loan amount when shopping around
When you are shopping around for the very best deal on an auto loan, it is important that you compare apples to apples, meaning the full loan amount and not just the monthly payment. This will give you a much better idea as to which loan you should take. Those who only compare monthly payment amounts usually end up regretting it very quickly.
Never assume the best
You never want to make the mistake of assuming the best when it comes to what your interest rate is going to be like, because you could be in for a rude awakening. Always assume a worst case scenario so you are at least prepared. If you let the lender know that you are shopping around or have already found another offer, you are far more likely to get a better rate.
Use an online calculator
If you are wondering whether ultra-low dealer financing or cash rebates are the way to go, you will want to use Bankrate’s car rebate vs. low-interest calculator to your advantage. This tool will help you figure out which is the better deal right down to the very last penny.
Getting an auto loan requires quite a bit of research, and it’s incredibly important that you do it before wrapping everything up. You definitely don’t want to rush into this sort of loan, but rather take the time to get all of the necessary information to make an informed choice. Those who shop around for the best loan deal will get precisely that. Make sure that you find a reputable and trustworthy lender that you can depend on to provide you with the money you need for a new car with minimal strings attached.