- 1). Take the time to shop around. Do not just rely on the car dealership. See what rates credit unions and banks can offer. Credit unions often have lower rates than banks do.
- 2). Choose the loan with the shortest term that you can afford. Your monthly payments may be higher, but you will save a ton of money in the long run by paying less interest. Banks often will also offer better interest rates for short-term loans.
- 3). Be sure to not tell the dealer what you want your monthly payment to be. They may adjust the price of the car or terms of the loan to meet your figure, but it is most likely to benefit them not you.
- 4). Find out if you can get pre-approved for an auto loan through your bank. You will have much more leverage to negotiate with the dealer if you already have the loan.
- 5). Avoid loans that do not require a down payment. Without a down payment, your loan will be very high and you will pay a lot of money in interest in the long term.
- 6). Check out online loan companies. They often offer interest rates that are the lowest possible. All you have to do is fill out an online form, and you will receive your loan estimate.
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