Getting the Best Deal on Your Auto Loan: Tips from the Experts
Buying a car is a big step in life. As you prepare to purchase a vehicle, you also should be considering auto loan options to determine the most affordable way to finance the purchase. By carefully shopping around and being a savvy negotiator, you can get the best deal on your auto loan to stretch your investment.
We’ve consulted with industry experts to provide you with tips and helpful information on how to get the best deal when it comes to auto loan rates.
Shop Around for Different Rates and Options
Before you decide on a loan, be sure to do your research and shop around. Find out the current rate for auto loans and compare different lender’s rates and loan terms. Different lenders offer different loan terms, so be sure to account for additional fees or special features that could end up saving you money in the long run.
Don’t simply accept the loan offered by the dealership or car manufacturer. It may be more expensive than one you could get from your bank or credit union. Try to keep your auto loan and mortgage payments combined to be less than 40% of your total monthly income.
Get Pre-Qualified for a Loan
Before you start shopping around for a car, get pre-qualified for a loan. That way, you’ll know the loan amount you qualify for and the interest rate you’ll receive. This will help you to stay within your budget by letting you know what you can realistically afford. When you sign up for an auto loan with Weathercheckers Auto Loan, you even receive a signed, pre-qualified contract so you can negotiate more confidently at the dealership.
Think Beyond the Monthly Payment
When shopping for a car, it can be easy to focus too much on the monthly payment, which may appear much more affordable than the total cost of the loan. But the longer your loan term, the more you’ll end up paying in interest. That’s why industry experts suggest buying a car you can afford and paying for it as quickly as possible instead of stretching the loan over five or seven years.
Down Payment and Trade-In Value
A large down payment or a trade-in can make a big difference in your monthly payments when you finance a car. Consider the trade-in value of your current vehicle or make a large down payment if you can afford to do so. Your monthly payments may be lower and you may be able to finish paying off the loan more quickly.
Negotiate to Get the Best Deal
Once you’ve done your research and you’ve found the best loan for you, do not accept the first offer from the dealership. Have the confidence to negotiate and ask for what you want. Present your pre-qualified auto loan offer and don’t be afraid to ask for lower interest rates and longer loan terms.
By staying informed, doing your research, and negotiating confidently, you can snag an auto loan with the best rate and terms possible. To learn more about auto loans and financing options, visit Weathercheckers Auto Loan to find the best deal for your next vehicle.
