Tag:AutoLoan | Auto Loan | Auto Loans
Before you set foot in a dealer's showroom, learn all you can about auto loans, leases, special financing and more.
Auto Loans: Calculators
Use these tools and calculators to make the smartest decisions about auto loans, auto payments and auto rates.
Auto Loans: Tips & Advice
How to get the best car loan, Internet research is a good place to start
No. 1. Start with a copy of your credit report. If it's really bad, stop applying for a loan. Each rejection will lower your score even more.
No. 2. Don't be in a hurry and do plenty of Internet research on both your preferred car and on local auto loan rates. Fifty-eight percent of all Americans do not buy a car within their first 30 days of starting to car shop.
No. 3. Don't fall for "zero percent financing" campaigns because very few Americans have the credit standing to qualify (an estimated seven percent). Your car loan rate will depend on a number of factors, including your credit score and the size of your downpayment. If you're a classic bad credit car loan customer, start thinking about a loan in the $10,000 range, as that is the comfort range of most financial institutions.
No. 4. Here's the hard part. When it comes to talking with the dealership, try to keep things simple and separate.
• Try to settle on the total price of the vehicle first -- don't think in terms of monthly payments because any monthly payment can be made to match your budget by stretching the loan out longer.
• If you're thinking about a trade-in, consider selling your old car on your own. It may be more of a hassle than you want, but you might get a higher price.
• The more you can apply to a down payment, the better you will be treated. Experts suggest putting at least 20 percent down as a way to avoid becoming upside-down on your loan (where you owe more than the vehicle is worth). Depending on your credit, you might have to think about 30 percent down to find your best possible car loan rate.
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