I obtain my Auto loan from a dealership?
Many wonder if getting a loan at a dealership after you negotiated
your car is the best place or if its just another way for
the dealership or car lot to take advantage of you. There
are many reasons you do not use the dealership to look for
you the “best” loan. When you are searching for
a car whether it is new or used we always advise you to have
your credit information and loan in hand.
If you credit is below a few points that it should be to
get the best finance rate, most of the time the dealership
and the lender will work together to add on additional interest.
This can be around 2 or 4% additional interest that is sometimes
enormous when you are buying a car. Researching your auto
loan before you walk into the dealership and being pre-approved
for a loan will make your negotiating powers stronger for
the price of the car and bring down your total costs saving
Another way the dealership makes money is finding your credit
report information. They may charge you for a credit report
costing you a few extra dollars more than you would pay online
for a simple report you can just print out.
Steps for the best deal on a auto loan:
1. Look up your credit report first and find out your score
(sometimes you can skip this and goto step two since the lenders
look up your credit for you)
2. Compare loan rates: Note: If you own a home make sure you
check out home equity lines or credit or refinancing
your home to get the lowest interest
3. Find out your pre-approved loan amount then find out what
kind of car you can budget.
4. Walk into the dealership and find your new or used vehicle
and say you will be paying for it yourself and negotiate and
get the best deal.
5. See if you can get cash for your clunker or junk your car out!
If you choose to get your loan from the dealership knowing
they are known to up the rates then make sure you negotiate
and get the best loan deal you can. Yes, you have to negotiate
your auto loan interest as well as your total car price. Just
remember its all about negotiating when you are buying a car.
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