New Auto Loan Sources That You Can Tap When You Buy A New Car
Finding a new auto loan must be your first step when you are shopping to buy a new car. You should
know that when you are dealing with new car dealers, there's a high probability that you may be subjected to sales pressure tactics. Be ready before you even set foot on a car dealership.
Visit this site's advice about buying cars because there's nothing better than being equipped. Read first the basics; be informed. Remember that next to purchasing a home, buying a new car is your biggest financial investment. Plunging yourself into buying a new car without being familiar with the ins and outs of it could be costly.
The internet is a good auto financing loan source. There are better auto loan deals there because they can offer low rate auto loan. Visit sites such as Up2Drive and Roadloans.com
. You'll be surprised at how easy to obtain car loan online.
In obtaining a new auto loan, you must be more informed about a few important things. Aside from your bank, credit union, now you know that you can rely on car financing sites in the internet to obtain a car loan.
Here's a few "don'ts" to keep in mind when buying a car and looking for a new auto loan:
1. Don't be too quick to accept the dealership financing offer. Dealerships typically offer higher rates because they buy financing from banks and other sources, and raise the rate to make a profit. Always shop around for the best rates.
2. Don't go by rate alone. The rate is only part of the equation. There's more to a car loan like how much you'll be putting down and the loan terms before making a decision.
3. Don't be impulsive. Do your car research first, avoid going to a new car dealer without knowing which car you want and what you are prepared to pay. Car salesmen typically employ sales tactics to push you into buying more expensive models with options that you sometimes don't need. If you encounter such salesmen, remember that it's you who will make the more expensive monthly payments.
4. Don't visit a car dealership without reviewing your credit ratings first. You should access your
credit report and know what your FICO score is. Go visit https://www.annualcreditreport.com to get a free report. Some unscrupulous dealers will tell you that you credit rating is lower than it actually is. You should know what you have. Having good loan terms on your new auto loan costs you less money. Keep an eye on your credit through Equifax which can help you obtain a better loan, refinance you car and therefore save money. Get Equifax score now and keep tab on your credit.
5. Don't let the dealer start the deal by asking you how much monthly payment you can afford. This is their favorite ploy: focusing on payments over price. If they make you focus more on low monthly payments than on the price of the car, you may be paying more in the end. Refer to this advice in this site in knowing how to haggle over the price of the car with the dealer. Don't let the dealer charge you thousands over MSRP. Read more about MSRP here.
6. Don't look for the car first. Focus on auto loan rates first that apply to you because it will determine how much monthly payment you will pay and therefore how much you can afford. The table below shows the relationship between FICO scores and monthly payments on new auto loan of $20,000 payable in 36 months (as of May 2, 2008).
|FICO Score||APR||Monthly Payment|
7. Don't take a long term loan. Cars depreciate quickly, so you'll want to pay off the loan in a short time period. While the monthly payment will be higher in the short term, the interest payment will be lower.
8. Don't feel obligated to stay at the dealership while you are negotiating for a new auto loan. There are plenty of car dealerships out there. If you feel that you are being on the short end of the deal, walk away.
Visit this page for used auto loan.
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