Looking for a great price on a car can take a long time. Hours can be spent laboring over the latest craigslist postings from new and used car dealers so why not spend some extra time trying to figure out your auto financing as well? Before you get a car you should spend time looking for the right loan. Use the visual below to learn more about how to get ready for loan approval.
Infographic is the property of responsiblelending.org
The first step to not paying to much for your loan is to run your credit report. This will help you understand exactly where your credit stands. Check out annualcreditreport.com to get a free credit report. Consumers can get a free report once a year. We also provide a more comprehensive credit score review when you fill out our online lending application here.
Before finalizing the deal with a lender you can negotiate interest rates. Did you know that 8 out of 10 car buyers finance their new or used vehicle through the dealer? You can ask the dealer to match the same rates you’d get from a bank or credit union.
Don’t get sucked into the monthly payment trap! You must understand the total cost of the car loan and not what you can afford every month. Don’t get sucked into a long term car loan with a vehicle you really wont want in five years. It’s better to buy something a little cheaper if you’re planning on just getting a vehicle for the short term. You should also expect to pay some sort of down-payment fees with your loan.
You don’t have to close on a new or used car right away. Don’t give into unnecessary sales pressure on a car that’s really not going to meet your needs. You should take 24 hours to think on a car purchase before you sign the paperwork. You are legally allowed to take the paperwork home and review it before signing off.
Don’t let them sell you on the add-ons. You’ll pay hefty fees over the long run with any add-ons like, service contracts, protection plans, disability insurance etc… Just don’t do it! If you really need any of these types of services just purchase them outside of the dealership. You’ll find them for a lot better prices… guaranteed!
Make sure the deal is final before driving off of the lot! If you drive off before finalizing the paperwork the dealer might require you to come back later and stick a higher interest rate on the loan for the car. Finalize all paperwork before you leave so you know exactly where your financing stands.