If you're shopping for a new car, it may be tempting to use the bank offered by the car dealer, but this could end up costing you more money. Shopping around for an auto loan may be the best thing you can do to help save you money. To help you get the best auto loan possible, read on for tips.
Shop Around For The Best Interest Rates
Look around at different banks for the best interest rate possible. Of course, just because they have the best rate doesn't mean you're going to qualify, so you have to do your part as well. Be sure to read through the terms of the loan to be sure you aren't getting a cheap monthly payment attached to a lengthy amount of time. Don't just shop for your auto loan by how cheap the monthly payment is for you, as this can lead you into a loan that takes quite a while to pay off. Pay attention to the terms.
Plan For A Down Payment
Plan on paying a down payment on the loan. This helps show good faith and can help give you a lower interest rate. Talk to the loan company about how much is best to pay as a down payment. Don't strap yourself for the month by putting down too much money, only put down what you are able to afford.
Clean Up Your Credit Report
If your credit report is in bad shape and loaded with old loans, payments you've made late or not made at all, you have some work do to. Run a credit report (you are allowed a free report from the credit bureaus each year), then take a good look at it. Clean up what you can before even attempting to get any new loans. Make all of your monthly payments on time and be sure you remember to make your payment on these debts each and every month. If you have to put your new car purchase on hold for a little while, it may be in your best interest to do so. After a few months of being better about making payments on other loans/monthly debts, you can rerun your credit report and see if it's any better.
To help you get the best auto loan possible, shop around, but then do your own part in getting the best rate that you can get.Share