Understand Your Car Loan Options
We have all been to dealerships that often treat the financing of an auto loan as an afterthought. They would much rather sell you a car first and then discuss the terms later. Happens all the time.
However, that approach puts you at a disadvantage and it often results in buyers agreeing to finance terms that aren’t right for them. So here are some tips for getting the right car loan for you.
1. Determine Your Budget & Car Loan Payment Limits
Before you apply for a car loan, it’s essential to know exactly how much you can afford to borrow, and what your monthly payments will be. To make it easy to determine your budget, myAutoloan.com offers two convenient tools: A Car Loan Payment Calculator and a Car Loan Rate Calculator. By using these car loan calculators, you can easily determine what kind of car you can afford and have a good idea of the loan payments with your trade in.
2. Understand the Components of Your Car Loan
The key components of any car loan are:
- Vehicle Price
- Down Payment
- Interest Rate
- Length of Car Loan (Term)
- Monthly Payment Amount
- Fees: Taxes (government fees)
Frankly, understanding these components and knowing that only the Government Fees are not negotiable is important. Everything is negotiable as it relates to the vehicle and add-ons. For an overview of how to get a good deal, check out this finance guide – knowledge is power so check it out as you prepare to finance your car.
Whether you get a car loan through myAutoloan.com or through a dealership, always review and understand each point on this list. Don’t become so preoccupied with your interest rate or monthly car loan payment that you agree to a higher vehicle price or additional products such as service contracts or other “back-end” products that you may not want or need.
3. Shop around for a Car Loan Before Going to a Dealership
Car financing options are available to consumers – having a choice is a powerful thing. At myAutoloan.com, you can get up to four loan offers from which you can choose the best one for you. You are not limited to loans offered only through auto dealers. Having your financing approved before you go to the dealer gives you more leverage when you start negotiating on the price of an auto you are interested in. Being a “cash buyer” is a great way to keep your costs low on financing and negotiate a great price for the auto you want.
Today, there are many car loan sites offering a range of new and used car finance solutions. Online car loan companies like myAutoloan.com offer some of the most competitive APR’s in the market, because their loans are not “marked-up” like dealership car financing.
4. Negotiate Your Price & Get Your Car
Okay—you’ve secured your car loan, done your research, and found a car that fits both your budget and your practical needs. It’s time to get yourself to a dealer, find the car you want and begin negotiating a sale price. Many auto dealerships have internet departments that will provide a price quote via e-mail. Start by contacting a local dealer and request a price quote or, go directly to a local dealer’s website.
You’ll find it’s possible to save hundreds if not thousands of dollars from the MSRP before ever stepping foot into a dealership showroom. Next, go to the dealership, take a test ride, with your financing already taken care of you can then drive home in your next new or used car!
By using these resources mentioned above, you can and will find competitive financing and save on the car that you decide upon. Good luck and happy shopping.