.
Save up to pay cash for a car, and you’ll save yourself thousands of dollars in interest charges. But if you have to finance it, you can save by arranging for a loan before you even enter the dealership. That way, you can choose your own terms and not feel pressured to take the dealer’s financing.
It helps to have your credit score in hand so you can prove you’re eligible for the best rates. If your score is on the low side, you may want to take steps to improve it before you apply for a car loan.
Loan sources range from credit unions to banks to online lenders. If you have a computer, that’s one of the easiest places to begin shopping. Lenders like E-LOAN at www.eloan.com and CapitalOne at www.capitaloneautofinance.com are great sources of competitive loans. Application is free and rates are guaranteed for 30 to 45 days.
Some lending services actually send your loan inquiry to several banks that respond with bids for your business. One example is LendingTree.com at www.lendingtree.com or 800-411-8733.
One benefit with online lenders is that you won’t have application fees or hidden finance charges. But if an online loan isn’t right for you or you just want to use the Web to gather information, then visit your bank or credit union next. Let them know you’ve been shopping for a deal, and you’re familiar with interest rates.
After you find some possible loans, you can plug the rates, fees, and length of payment term into an online calculator. One place to check is www.myfico.com under Calculators. It will help you get a true picture of how much you’ll pay for your car and what it’s going to cost each month.
After you have your financing squared away , you can confidently negotiate with the dealer to get the best price on your new car.
All the best,
Timben
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