Your credit score determines the interest rate of your auto loan. The higher your credit score, the lower the interest rate. Once you obtain your FICO credit score, apply for an auto loan at more than one place. We recommend coming to the auto dealership with a guaranteed auto loan. Bankrate.com is a helpful website that generates rate tables to assist you in making informed financing decisions about your auto loan.
We understand that applying for auto financing is a long and daunting process, investing your time to get the best loan available is well worth it. The most important part of the process is doing your homework and arriving at the dealership having already been approved for auto financing.
Once at the dealership with auto financing in place, you will find it easier to stick to your budget and allow the dealership to be more flexible toward your financial needs. Here are a few tips to help you get the best auto financing you can, before you even step inside the dealership.
Retrieve Your Credit Score
The 3 major companies that you can retrieve your credit score from are Experian, Equifax and TransUnion. The companies collect your information and give you your FICO credit score, based on a combination of your payment history, amounts owed, and length of credit history, new credit and types of credits used. Your credit score determines the interest rate of your auto loan. The higher your credit score, the lower the interest rate.
Come to the Dealership with Auto Financing in Hand
Once you obtain your FICO credit score, apply for an auto loan at more than one place. You can apply at your local banks, credit unions, an online bank and even your auto insurance agency. We recommend coming to the auto dealership with a guaranteed auto loan. This gives you the upper hand and bargaining power.
Bankrate.com is a helpful website that generates rate tables to assist you in making informed financing decisions about your auto loan.
Focus on Loan’s Total Cost
When deciding the term of the loan, base your decision on the loan’s total cost and not monthly payments. A three-year loan will have higher monthly payments, but will save you more money, in interest. Watch out for long term loans, especially if you buy new cars often. If you want to trade in or sell the car early, the price you get for your vehicle may be less than what you owe. It is best to get a loan term as short as you can comfortably afford.
Be Aware of Hidden Fees
While applying for auto financing at different businesses, keep in mind that some companies charge you penalties for paying off your loan early. Be sure to have the auto financing specialist explain the fine print and any additional fees that the company might charge.
Buying a New Car from an Car Dealer what are the Benefits
Visiting an auto dealership in pursuit of purchasing a brand new car is comparable to taking a child to a candy shop except the merchandise is much more expensive. At an auto dealership, there is a wide variety of inventory and you can choose from. New car deals it’s not all about the price.
Auto Repair Services Enhanced Performance of Your Car
Today's technology-driven world makes scheduling an appointment online via your service center’s website easy and convenient, helping you give your vehicle the best maintenance and repair services possible. Many car owners take their vehicle to an auto repair shop only when there is a problem with the vehicle. There are many service centers that offer quality repair and routine maintenance for your cars. Many car owners take their vehicle to an auto repair shop only when there is a problem with the vehicle.
Benefitof Purchasing Auto Parts from a Reliable Source
Any good parts place should give you a warranty so that if the part malfunctions or there is another problem, you can either get the part replaced or get your money back to buy it somewhere else. One option is to take your car to the dealership to have the new parts installed. Some parts that are replaced regularly, like air filters, can be bought anywhere.
