When shopping for a new vehicle, many consumers seek the best prices, but ignore the best car finance deals. Shopping for the best auto loan can save you from being too vulnerable when you take those first steps onto the car lot. Dealers could charge you a higher interest rate because if you don’t already have financing in place, you are at their mercy to purchase the vehicle you want. Before you give away the next few years of your life paying off a loan that you could have had a lower interest rate for, put just as much effort into shopping for the best car finance deals.
Walking into a dealership without first doing research on how you plan to finance your vehicle is setting yourself up to overpay. Walking into a dealership with a financing option from your bank already in place gives you flexibility and power to bargain. A good first place to start is your bank. If you’ve been with your bank for a long time, they are more likely to approve your loan because of your loyalty. Next, try third party financial institutions that specialize in loans.
When comparing loans, pay careful attention to the APR, or annual percentage rate. This ratevaries from day to day and the lower the rate, the more you will save in the long run. Also, look at the length of the loan term. A short-term loan will have higher monthly payments, but you will pay less interest in the long run. Long-term loans will have smaller monthly payments, but they lengthen the time it will take for your vehicle to build equity. This means it could be months before the vehicle is worth more than what you owe on it. So, if you needed to sell the car early, you would not get enough money to cover the amount that is still owed on it. To avoid this problem, experts recommend making a larger down payment or offering a trade-in worth at least 15 percent of the cost of the new vehicle.
Overall, you don’t want to take the first loan you are offered at the risk of being stuck paying a higher interest rate than a lower one you could have received elsewhere. This is why it is just as important to shop for the best car finance deals alongside vehicle prices. If you are in a position where your credit score is low, and lenders aren’t exactly fighting over you to loan you money, don’t be discouraged because there are still finance options available to you.
Many dealers offer car finance deals, through their own program, without the use of a third party. You may have heard this referred to as “buy here pay here.” Our website, www.carlotfinance.com allows you to shop among these dealers all in one place. We specialize in having a quality selection of used cars Charlotte NC. Because our dealers offer their own financing, they are likely to accept customers with lower credit scores. Our dealers work with you to help you purchase the vehicle you want with the monthly payment you can afford. Visit us online to find out more about our car finance deals.