When you buy a car, there is often a lot of paperwork. In fact, sometimes it seems like all the paperwork is just meant to confuse the buyer and take away a lot of the savings that were negotiated. In reality, this may be true for some lenders, especially car dealers who also offer financing. There may be a way to avoid the confusion, though, and here are a few suggestions.
If you want to save money at the car lot, you should start by looking at your own credit report. Based on the information in your credit report, the lender, any lender, will give you an interest rate and tell you how much you can borrow. You can get one for free online every year. Check it carefully to make sure it doesn't have any mistakes. Notice that it also shows how much you owe in total. If you have too much debt, you won't be able to borrow as much money.
Then, you should check online to see what kind of car loan you can get. Get pre-approved for a car loan. This will tell you exactly how much money you can borrow and in what price range you should look for a car. Get a few quotes online and carefully compare them to figure out which one is the best deal. It will take some time, but you will save some money by doing it.
A preapproved car loan means that the money for your car has already been given to you. Once you agree to the terms of a loan, the lender will send you a blank check with a credit limit. Within the given price range, you can buy any kind of car you want. Even if you receive the blank check, you are not obligated to pay back the loan until you sign it and use it. You will only be able to use the check for a certain number of days, which will likely be between 30 and 60 days.
After you find a car you like, go online and do a little research to find out how much it is worth. Also, look online to see if there are any deals. This will give you a good idea of what kind of price that dealer is really giving you. If it's much higher than other dealers, you'll want to buy your car somewhere else.
When you talk to the salesman and the rest of the staff at the car dealer, be sure to try to get better terms. Since you are bringing them a check, you will be in a better position to negotiate with them. They want the money and don't want you to leave with the check in your hand. You have more power over them because of that check, so use it to your advantage.
One other way to save money on your car loan is to put down as much money as you can. The smaller the loan and the less it will cost you in the long run, the more cash you put down. Another way is to make sure you are getting the right amount for your old car when you trade it in.
