After agreeing on a price, getting the right loan for your new or used car is probably the hardest part of the car-buying process. Most people go to a car dealership with no idea how to apply for a loan, and this lack of knowledge and planning costs them millions of dollars each year.
If you want to buy a car from a dealership and have it be a good deal for both of you, there are five things you should do before you sit down to talk: Get a copy of your credit report, look online before you buy, shop locally, learn the language, and be ready to bargain.
- Get a copy of your credit report
You can't pick up a personal finance article, magazine, or book that doesn't talk about how important it is to know what is on your credit report. Even though this advice has been hammered into our heads by the media for the past 20 years, most people still don't know their credit score or check their credit report regularly. You can get a copy of your report by contacting the three credit bureaus directly: Equifax, TransUnion, and Experian (formerly TRW).
Before applying for a car loan, it is a huge mistake to not know your credit score and the details of your credit report. Before you apply for a car loan, you should fix any problems on your credit report. This is because the results of your lender's credit check have a direct effect on your interest rate.
Your credit report has basic information about you, like your name, address, and social security number. It also has information about your late payments, any outstanding debts you have, and how much credit you have access to. It also has any public records about you, like judgments and bankruptcies, as well as questions about your credit from potential employers or lenders.
And just because you've made up for late payments, paid off all of your debts, or gotten rid of any judgments doesn't mean that these marks will be taken off of your credit report. Sometimes you need to follow up with your creditors to make sure they report your debt settlement to all three credit bureaus.
Also, if your identity is stolen or you are a victim of fraud, your credit report could have false, bad records. The Federal Trade Commission said in January 2006 that more than 686,000 people had complained about identity theft and fraud in 2005. Identity theft and fraud can hurt your credit report in big ways.
- ) Search Before You Buy
If you set limits for yourself before you go to the car dealership, you'll be much less likely to buy on the spot and leave with a car you can't afford.
You can save a lot of money on your car loan if you know how much you want to spend and what kind of car you want to buy before you go shopping. One easy way to do this is to go online and look at the websites of different car lots.
You can compare different car brands, models, styles, options, and prices.
- ) Go Local
There are a lot of national auto sites, but did you know that a lot of local car lots are also now online? Working with a local car dealer can be better than working with the manufacturer or a national website if you want the best customer service, a relationship that lasts as long as your car does, and the best deal on your car loan.
A local dealership is a good place to get a loan for the same reason that every town in the U.S. has a locally owned restaurant with regulars: local businesses care about the community. This interest often leads to better customer service, a more personalised way of selling, and the ability to get you a better loan than you would get from a lender who doesn't know or care about you.
Lastly, the local dealership may have more than one location. This gives you more chances to find the car you need, but the auto financing options are the same everywhere. For example, http://www.conklincarssalina.com/ is a link to a website. Kansas car dealer Conklin Cars Salina is also an a href="http://www.conklincarshutchinson.com/" target=" blank">http://www.conklincarshutchinson.com//a>. Hutchinson car dealer and an a href="http://www.conklincarsnewton.com/" target=" blank">Conklin Cars Newton/a> car dealer. A car dealer in Newton. So, if a customer goes to one dealership and doesn't find what they need, they can go to another location and expect the same level of customer service.
- ) Learn to speak it
There's nothing worse than going through the whole process of buying a car, thinking you got a good deal, and then finding out later that you were taken advantage of because you didn't understand what your salesperson was talking about.
From the link: "http://www.bankrate.com/brm/news/auto/20020909b.asp
" target=" blank ">dealer holdback to Rule of 78s, make sure you know some of the basic industry terms that could come up during your transaction. With this information, you won't miss something important or sign a contract or piece of paper you don't understand.
- ) Be ready to talk about a deal
If you've done the four things this article has told you to do so far, you'll be ready to get the best rate possible on your car loan. There's nothing wrong with talking to other lenders to see what rates they can give you, but you should keep in mind that too many inquiries into your credit report could hurt you.
And when you get an auto loan through the dealer, the salesperson wants to build a long-term relationship with you. This gives them a reason to work harder to get you the best rate they can. A lender online or off-site, on the other hand, only cares about the loan. The car dealer, on the other hand, wants you to come back to get your car serviced, come back when you want to buy your next car, and tell your friends about them. This helps the dealership's reputation in the community and brings in more business.
Before you sit down to get your next auto loan, take the time to do a little research so you can be sure you're getting the best deal. Putting in a little time and effort before the deal can go a long way toward making it a good deal for both you and the car dealership.
