Follow These Tips and Get the Best Deal on Your Car Loan
You have negotiated a great price on a new car, now all you need is a great car loan to make it a big deal. There are some tips through which you can get the best car loan:
- Shop for the car loan prior to car buying: Prior to buying a car, you need to start the loan application process with credit unions, banks and lenders. If you go for purchasing the car after getting prequalified for the loan, you can go to the dealer with a blank check. With a solid and written contract with the dealer, you can conveniently go for a good financial deal.
- Know about your own credit history: You can contact your banks or the lenders to know about your credit score. You can even check it online. Moreover, you need to check whether your credit history contains any error or not. In case of any discrepancy, you should rectify it immediately.
- Ask for the total loan amount: Some customers prefer to ask for the monthly payment rather than the total loan amount. The lenders will focus on the monthly payments so that they can induce you to borrow some money simply by extending the months you pay. You will ultimately end up paying more interest.
- Do not expect the best: Do not expect a lender to offer you the best rate as he is not obliged to do so. You must let him know that you are shopping around or you already have another offer.
- Do not go for conditional financing: You should not go for a car deal until the financing including down payment, interest rate and monthly payment is finalized. In case, the financing is conditional, later on you will have to accept the less beneficial terms.
- Check the lender you are dealing with: Know about your lender before going for any car loan. You can make use of online sites to learn the customers are saying about the lender.
Thus, you need to keep these simple things in mind for getting the best car deal.