There are a number of ways to get the best car loan deal. One of the easiest ways to finance a new vehicle is through the dealership where the car is purchased. You should only do this, however, after you have done your research and shopped the banks and credit unions in your area to see what kind of an interest rate that you might qualify for. Once you’ve done this and if you find that you qualify for the dealer’s most “qualified buyer” requirements, you may be able to receive a loan at an even lower “subvented” rate from one of the manufacturer’s captive finance companies. An even lower rate from one of these lenders could save you hundreds of dollars over the life of the loan.
You should have a budget in mind ahead of time so that you have some idea of how much car you can afford, and what terms will meet your needs. New vehicle loans can be configured for 24 to, in many instances, 84 months. While the longer term loans usually offer competitive interest rates, calculating the total interest for the life of the loan will show you that you are paying far more in interest expense for the longer loan terms.
You can also save money and get the best car loan deal by doing some research on the internet for prices. Once you’ve finished, try applying on the internet at one of the better buying services. By doing this, you can save hundreds, if not thousands and you may end up at the closest and most convenient dealer in your area that specializes in upfront, competitive internet pricing. Researching interest rates can also make a difference. Even a few tenths of a percent interest can mean hundreds of dollars in your pocket over the life of a loan. Check for factory to dealer discounts and cash back rebate offers from the manufacturer.
Tags: car loan, used car financing