When the time comes to get a car most Americans head to the dealership and sign the first loan they offer. The downside of this is that you miss out on the amazing opportunities that you may have gotten elsewhere. Finding a low-interest rate car loan can help you save thousands of dollars in the long run. To help you out we have created a guide to help you find the best possible auto financing rates.
Your credit score plays a huge role in how much interest you pay in your life. This is why it’s time to take a look at your credit score and assess the best possibilities. While you can still get a car loan even if you have a low credit score, but you will end up paying a great deal more than what the car is worth. The reason behind easy access to cars is that it is easier for banks to repossess your car if you stop paying.
This is why we suggest you take a few days and fix any issues with your credit score. Moreover, if you have time you can take a few months to fix your credit score. Another tip is to find out the interest rates you will be offered before heading to the dealership. You can easily use a basic interest calculator online and check where you stand.
If you are unable to wait any longer, and your credit score is not great – we suggest you get quotes before you visit the dealership. Another way to go about the process is by checking with online lenders. So you can get an idea of the max amount you can loan, and how much interest you will be paying. This way you have a good idea of what’s to come, and where your best option lies.
Short Term Plan
Long-term plans might seem like an easier approach, but the longer you plan the more you end up paying. This is why it’s best to keep the plan as short as possible, making sure you can afford all your other expenses as you go. There is no reason why you should even consider a long-term plan. To get an idea we suggest you get quotes for both short and long-term plans. As soon as you compare them you will find out that you will be paying a similar amount for a longer period of time.
To make sure you get the best interest rate possible we suggest you put down 20%. Paired with a short-term plan can have a great impact on your interest rate. While many dealerships do not even consider asking for a down payment when you have a good credit score, but putting down the amount regardless of your credit score is a sure way to save money.
These are just some of the basics you should consider before signing a car financing scheme. Knowing your options and how to get through the process makes all the difference in the world. One that can help you save your hard-earned money, and leave you a little extra for other expenses in your life. Finally, getting you on the right track – a way you can enjoy the small pleasures without feeling guilty.