4 Wise Ways to Get a Favorable Auto Loan Interest RateInk Well Mag April 19, 2018 0 COMMENTS
The interest rates may be rising in the Palmetto State, but it doesn’t mean you can’t get the favorable deal. To become a savvy car buyer and secure financing with the least possible interest, use these tips:
Know Your Credit Score
Before shopping around for auto loans in Lexington, SC, Palmetto Citizens Federal Credit Union emphasizes that you should understand how creditworthy you are first. After all, your credit score affects the interest rates you qualify for. If you’re fully aware of your credit rating, no dealer or lender can trick you just to make more money from you.
Focus on the Big Picture
Many auto loan borrowers make the mistake of dwelling on the monthly payment too much. While it’s natural to get a deal that fits in your budget, concentrate on keeping your car expenses low wouldn’t necessarily save you money. It might even increase the amount of interest you’d have to pay over time, particularly when you ask for a long-term to make your payments more manageable.
You should focus on the actual price of the vehicle before thinking about your monthly payment. This way, you could see how much dollars go to the interest, and spot unwanted features that would make your auto loan more expensive.
Pay a Large Down Payment
Putting down a large amount of money makes the deal less risky for the lender. You can use a sizeable down payment as leverage to negotiable for a lower interest rate.
Work Directly with a Lender
If you apply for car financing directly to the dealership, you might unknowingly pay for highest interest. The dealer markup could increase your interest rate by a small percentage, which could be equivalent to thousands of dollars throughout the maturity of your auto loan.
To find the best possible deal, get the middle person out of the equation. Also, obtain financing from a credit union to secure a more competitive interest rate.
Shop for an auto loan before you look for a car. If you play your cards right, you can put yourself in the strong position to negotiate for a good interest rate and buy the vehicle you want.