When you decide to purchase that new car, you’ll usually need financing. Of course you can let the dealer arrange all this and it will save you a lot of trouble, but it may not save your dollars. It doesn’t take much effort to do a bit of research online. Capital One Auto Finance and E-Loan are two good online financing options that could help you save money. If you have competing financing quotes, you’ll be able to save a bomb on interest rates.
Of course you will already have inspected the deals available from places like Cars.com, Invoice Dealers, CarsDirect and auto.com. These websites will give you all the information on what you should be paying for a new car and you’ve got it all stored in a special folder so you don’t forget, right? So now you can make the deal go your way, instead of having to believe everything the salesperson tells you.
So now you have two options, you can pay for the car with your check from your auto financing place, or you can use it to negotiate lower interest rates from your dealer. One other thing you should know that’s of vital importance. That is your own credit score. This will have a direct bearing on how high or low your interest rates will be. If you don’t know it, they will be sure to find out and that will give them an edge, so be prepared. You can find out your credit score online from Equifax, TrueCredit or Consumerinfo, for a small fee, but it’s worth every dime.
If your credit rating score gets you rejected for a loan (below 680 may do so), apply to an online financing source that caters especially for high-risk loans. AutoCredit Finders is one place that will usually find an underwriter willing to give you credit. Your score will need to be 525 or above and you will need to have been working for the last six months with no bad credit history for that time. You may have to pay a higher APR than some, but after a few months of meeting your payments on time, it should be possible to re-finance to a lower APR.
Remember, you should be the one to know all about what financing you can get at what interest rates, not the car-dealer. Otherwise, you are giving him an advantage over you, otherwise. So go along prepared with facts and figures and you won’t regret it.