Get a Better Auto Loan Interest Rate
February 8th, 2009, Written By: admin
The auto loan interest rate that you can secure is often a deal breaker. It can allow you to buy a better car or prevent you from getting the accessories you want. That 1% change can be all the difference in your monthly payments, especially when you add in insurance and other costs. Before you go shopping for your new car, know what to expect and where you stand. As an informed consumer, you won’t get swindled and you will be able to negotiate a better deal on the purchase on your new car.
The average auto loan interest rate is about 8 percent. What you don’t want to do is get your loan from the car dealer themselves. Go out and get yourself a loan from from a private bank or lender in order get the very best rate that your current credit score will allow. Dealerships use their convenient, “drive home in your car today,” sales method while you are emotionally involved with your purchase. You might be surprised to see that your loan is 12 – 15% when you get your first bill.
Line up your loan before you go shopping. That way you have a bottom line to work with and the sales person can’t talk you in to purchasing more than you can afford.
What Can You Do to Get a Better Auto Loan Interest Rate?
One thing you can do to allow yourself to get a nicer car at the same monthly cost is to improve your credit score before you get a loan. Just a 1% improvement in your auto loan interest rate can save you thousands of dollars over the life of the loan. Just think… by knocking an additional $100 a month off your car loan, you can have your insurance paid for, reduce your monthly costs, or buy the more expensive car.
Know your credit score before you apply for your loan and without question be sure to download your credit reports and look for errors. Recent studies show that 1 in 4 credit reports contain errors that serious enough to harm your credit score. You’ll want to get these items removed before you shop around, and by law the credit reporting bureaus must remove any inaccurate information. You have a 1 in 4 chance in quickly increasing your credit score this way, but once you download your credit reports you’ll probably notice a couple of other quick fixes.
Download Your Free Credit Score Reports
Categories: Auto Loans
