Auto Loans
Recently there was legislation passed regarding the $700b bailout package. Lately banks have tightened up and auto loans and car dealership financing. However I pre-wrote the following article and will post it for your reference in case times change for the better!
When your ready to purchase a new or used car. And you want to actually save money over the long term. It’s best to get approved for auto financing before you walk in to the auto dealership.
The reasons for this is clearly you will have purchasing leverage! You know that you have been approved for the loan. Now you need to get the car at the right price. Never be sold on monthly payments! Purchase the car based on the price.
The dealer finance manager and the salesman will negotiate and sell you on monthly payments. So if they finance you how do you know the following items during negotiations:
Interest rate
Term
Price of car
This will happen especially if your using their in house finance guy to set up the loan for you. As a result of the dealer obtaining your financing they usually, in most cases get a rebate from the lender. Since they are getting money back from the lender, your interest rate could be higher. So it would be better just to do this financing your self and save money.
Not everybody reading this book, will want to shop their own loan, so in that case let the dealer do it for you and enjoy the convenience.
If you have average to good credit and a job that reflects you can handle the payments for the price of the car you seek. Begin your search with the following.
If you have not done so already…join a credit union and apply for a car loan with them. They do many of these each day. Even the dealerships call them and try to approve their customers!
If your credit is perfect and you have a great job…go to a local bank.
If you would like a loan broker to find the best auto loan deal for you try the following companies:
www.eloans.com
www.lowermybills.com
www.carcredit.com
www.lendingtree.com (click auto loan tab)
1-800-BAR-NONE
1-800-APPROVED
They send your loan application out to different lenders. The lenders will respond if you are approved, and give their best offer since the are competing for your business/loan. The lender should call you directly, to notify of what they have for you or if anything else need to complete the application.
It’s always worth a mention when you purchase a used car that you check it out good and have a qualified mechanic inspect it. You can also perform a lemon check at www.carfax.com
Good Luck & I hope you get the car your looking for!
Please Read!..This chapter is not a promise or guarantee of credit approval. It only presents you to the lenders.
Each company has their credit underwriting & approval guidelines. You may or may not be approved. Results may vary.
Tags: Auto Loans, car loans