What You Need To Get A Car Loan: 5 Easy Steps

It is hard to avoid all of the new vehicle commercials offering things like low interest rates and cash back incentives. When your car needs to be replaced soon and you are bombarded with images of sleek new vehicles with the newest technology available, the best place to start your shopping is with your car loan. Request your free no obligation auto loan quote today!

It’s All In The Details

Many are overwhelmed by all of the terminology associated with financing a new car. Everyone is familiar with basic interest rates and payments, but paying extra close attention to the details can save you hundreds if not thousands of dollars over the term of the loan. Utilize the 5 steps below to ensure that you get the best deal available on your next vehicle.

1. Budget– First you must determine what you are willing or able to spend on a new vehicle. However, the car payment is far from the only expense to consider. Car insurance costs, fuel, and maintenance fees are three other expenses to consider when shopping for your new ride. After totalling all of the expenses, determine what would fit your budget and stick to it. When you speak to your dealership about what you want to spend, make sure you under estimate to give yourself room for negotiation.
2. Prepare– After determining your budget and your expenses for the month, be prepared to share the same information with a lender. Rent or mortgage payments, proof of insurance, banking statements and much more can be requested from a lender, especially for more expensive vehicles with concurrent payments. Having copies of these documents ready when you arrive at a dealership will cut hours off the total time you would have to spend there if you were unprepared. It also shows them you are organized and most likely an ideal candidate for a loan.
3. Credit Score – Know your credit score before you enter the dealership. Make sure you get a free credit report from each of the 3 credit bureaus and have them ready. The scores can vary between credit bureaus, so ask which they pulled a report from. Then, make sure you are basing your loan interest rate on the highest score. A twenty or thirty point difference might just be enough to get that 0% loan every new vehicle purchaser wants.
4. Shop – Shopping around for loans and low interest rates is not as exciting as shopping and test driving new vehicles, but it is just as important in the process. By choosing the company that offers you the lowest interest rate, you can save hundreds or thousands of dollars over the length of the loan. Beyond the interest rate, read the details of the loan and ask questions to make sure you understand everything. Lastly, check the BBB and other ratings bureaus for the lenders credibility and ratings. Request a free no obligation to buy, auto financing quote today.
5. Negotiate – Once you have found a few reputable lenders with the best rates and terms, you can start negotiating with them to lower your rates, you may be able to get it even lower than your quoted rate. Banks and lending organizations compete for your business just like everyone else, so use that to your advantage before you apply for your loan. If lender A offers you a 5% annual interest rate and lender B is offering 4.75%, you can approach lender A
6. and try to negotiate a 4.5% rate with better terms. Once you have your loan amount and lender settled, then the fun begins! Go out and test drive some new vehicles in your price range.

Request your free online auto loan quotes from CarLoanMatcher.com today and find out how easy it can be to get into the new vehicle that you want today!