Every American wants to own a car. Whether it is a sports car or a SUV, it all depends on your needs. You have to consider things while buying a car and a car loan is one of them. Every car buyer dreams of a perfect car and a low rate auto loan.
There is simple procedure that you need to follow in order to get a car loan for your car. By reading next few paragraphs, you will understand how to get a low rate auto loan.
1. Credit Rating
Find out your credit scores. If you have good credit scores, then you can get an auto loan easily. If you no credit history or bad credit scores, you must search for a subprime lender.
2. Scan Your Financial Statements
Take the financial statements of the last six months and calculate the savings you have made. Get an average of the current expenses and incomes. Take into account any other income that you may receive and expenses that you may have in near future. Once you have the numbers, you will know how much money is needed for the down payment. You will understand how much monthly payment and interest rate you can afford.
3. Plan to Window-Shop
Once you are aware of the approximate budget, visit the nearest car dealers in town. Take a look at the various types of car and their ranges. Then visit the lenders, dealer, manufacturer, financial institutions, credit unions, etc. to get an idea of the kind of interest rates you’ll receive. Write down the loan terms, down payments, discounts, penalties and repayment periods that different lenders are willing to offer you.
4. Tally the Figures
You have two sets of figures with you. Your budget and car loan quotes. Compare them and get rate of interest that suits you the best. Make sure that the automobile loan program you are willing to opt for has lower amount than the estimated budget.
5. Strike the Deal
Now you know your exact position, visit the lender. It is time to negotiate your way in to lower the interest rates. If you are not very good at negotiating, take someone along who knows how to negotiate or has experience in car buying. Never settle for the first deal that the lenders offer you because it may be very high.
6. Sign the Agreement
Once your loan gets approved, finalize the terms and conditions. Read the document thoroughly so that you do not leave any clause unnoticed. There might some hidden clauses so it is always better to read it. Make sure all the promises that the lender made are mentioned in the car loan contract.
Follow these easy steps to get guaranteed low interest rates on your next car loan.
All the best!