Negotiating Your Car Loan: How To Do It
Car loans are tricky business. Between interest rates and credit scores, it can be almost impossible to know if you’re getting a good deal. If you purchased a new or used vehicle in the past few years, and are unsatisfied about how much you are paying in interest, it may be time to renegotiate. Here are a few tips you can use for a good shot at a good interest rate.
Shop the loan separately from the car
You can start the loan application process before you even consider your vehicle. Consider credit unions, reliable online lenders, banks and your auto insurance company. Compare rates so you have a solid selling point once you hit the dealership.
Consolidate your applications
It’s common knowledge that your credit score takes a hit with each credit inquiry. But did you know that consolidating your applications can help? Submitting all of your car loan applications within a two-week period will ensure they count as just one inquiry. Keep this in mind while you shop around!
Read the fine print
You should always thoroughly read over any contract you’re signing, and this is especially true for car loans. Your lender is not obligated to give you the best interest rate you qualify for. Be sure you are dealing with one you can trust, and always ensure you understand the conditions before you enter a binding agreement.
Do your math
If your payments don’t add up to the interest rate you’ve negotiated, beware! You should always double-check the math on this type of deal, as mistakes can happen, and they can happen at your expense. Use an online auto calculator as a good start.
Ready to get that car loan? Our Payne Insurance Group may be able to help! Visit one of our Payne dealerships, located all throughout the RGV, to talk to a trained specialist about a car loan.
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