Comparing vehicles and models, accessories and mileage and checking out an abundance of dealerships to see who has the best price for the exact vehicle you want to drive.
You need to do the same thing when it comes to getting financing for your new vehicle. Financing options abound, and everyone has a slightly different rate with slightly different terms. It is up to you, the consumer, to find the deal that is right for you.
The process of finding a financing option which is best for you can seem daunting but there are at least a few things you can do to make the process a lot less painful and lot more effective in the long run.
In many cases the dealership will work to help you find an option that you can handle. Remember, they want to sell you a car, so it is in their best interest to help you buy it, but there is only so much they can do. The rest is usually up to you.
Start by comparing financing options available at institutions other than the one your dealer recommends. Don’t be afraid to search online, visit your bank, the neighborhood credit union or anyone who makes new auto loans. Everyone will have different interest rates, terms and options. The more options you have the better the deal you can secure for yourself.
Leasing might be better for you
You might also want to consider a leasing option rather than a straight purchase. With leasing you can often get a much lower monthly payment and also not have to worry about maintaining the car month after month because dealer provided maintenance is part of the agreement. Of course at the end of the least the car belongs to the dealer, not you, so be sure you understand how that will impact you in the long run if you decide to go with that option.
Your credit report
If you do decide to purchase you vehicle there are a few simple steps you can take to make certain you get the financing options that you need.
First, get a copy of your current credit score and credit report and start checking it for errors. It is not uncommon for credit reporting companies to use outdated or completely wrong information. It is up to you as the consumer to make certain the information in your credit report is accurate.
Every lender is going to use your credit report and credit score to determine whether or not to loan you money and what terms to offer you. Making certain this information is correct will go a long was to getting you the deal you need.
Don’t just settle for the financing option offered by the dealer. Start comparing rates of as many lenders as you can. Visit your bank, local credit unions and even internet lending agencies. Collect a list of the top five deals offered then revisit them and start negotiating. Don’t be afraid to haggle for the best possible deal. Lenders, if they want your business, will be willing to fight for it and will adjust the terms of their loan to better suits your needs in order to get you to deal with them.