1. Take charge of your credit report by knowing what’s on it
Financing is one of the most important things to consider before looking at potential vehicles. The first step to obtaining a loan is to know your credit score. Auto loan interest rates can be negotiated lower if your credit score is high.
As a rule of thumb, the higher your score, the lower your interest rate, so review your credit report if your credit score is less than satisfactory.
You can raise your credit score quickly by taking immediate actions. In exchange for removing the negative item from jaywolfeacura.com your credit report, you can negotiate a payoff with the original creditor if you discover that you have accounts in collection.
As a courtesy, you can ask your creditor to remove a recent late payment that is causing a blemish on your credit report. Do not hesitate to contact the credit bureau that published the incorrect information if there are errors on your credit report.
When lenders pull credit scores, they turn to Equifax, Experian, or TransUnion for credit history reports. Getting an accurate assessment of your credit health requires checking your report with all three bureaus, as they have similar but different scoring methods.
2. Find out what loans are available
to you
Having a good credit score will make it easier for you to finance your next car. Even though you can apply for an auto loan at the dealership, it’s helpful to know all your options before you go.
Take advantage of existing relationships with banks, credit unions, or other lenders by checking out their auto loan interest rates. It can save you time and give you an advantage when negotiating the final sale price of the car if you are approved for a loan before visiting a dealership. Additionally, if you have financing in place, you’ll be able to determine how much you can afford and how much you have to spend.
You can still learn about finance deals and loan terms when you find the car you want and are ready to talk numbers with the salesman. You may be able to beat any loan rate offered by your lending institution when a manufacturer authorises promotional rates.
Dealerships may offer financing in place of bank loans in some cases.
3. Find out the value of your trade-in vehicle
You shouldn’t wait for the salesman to tell you how much your current car is worth when you plan to trade it toward the purchase price of your new one. Make sure you discuss pricing on the car you like before talking about your trade-in.
You should do your own research to determine its value. Online, Kelley Blue Book allows you to input specific information about your vehicle, including its year, make, model, mileage, and condition.
Consider making minor cosmetic repairs on your old car; this can significantly increase its net value.
Your estimated trade-in value will provide you with the information you need to negotiate with the car dealer and accept an offer that gets you the most money.
