Buying a new car is a big decision and negotiating the price is only part of the equation. You also need to know how to secure the best interest rate. A great car loan will finalize a great deal. You just need to know how to get it.
Before heading to the dealership, here are some tips on how to get the best interest rate when buying a car.
- Shop your car loan separately from the vehicle. Before starting your negotiations on the car itself, you should shop around the loan application process. You need to know who is willing to give you a loan, for how much, and under what terms. This is important to know before picking your vehicle.
- Shop the total loan amount, not monthly payments. You might have monthly payments on the brain since that’s how much you have to come up with each month, but it’s also important to shop for the total loan amount.
- Know your own credit rate and history. Before trying to buy a new vehicle, you need to get familiar with your own credit rate and history. If you’re not already, it’s important to know your score and what kinds of things are going to show up on your credit report when you apply for a car loan.
- Always read the fine print. If it sounds too good to be true, there’s a good chance it is. Read all the details of the loan contract before you sign it and if you’re not sure, get a legal expert to read over it for you before getting into a contract.
Now that you have these tips for getting the best interest rate, you’re ready to start shopping for your car. Keeping in mind that your interest rate is just as important as the car and the total price of the car will help you shop smarter and get the best deal for you overall.