While most car dealers may seem like they are your side, you have to remember that they are there for one thing – to support their family. If you’re like most people who have to sign up for a loan to purchase a new car, there may be some things that the dealer won’t tell you, and it’s for a good reason.
That Great Rate
If you walk into any dealership, they probably have a banner blasted on their wall proclaiming that you can walk away with a loan for next to nothing. However, what the dealership doesn’t tell you is this rate is for those who meet their elite standards. If you’re lured into a particular dealer because of a specific car loan rate, make sure you know how you can qualify for it.
They Probably Aren’t the Best
Dealerships make a large commission when they pass on an auto loan to their customer, and this is why they are so aggressive when trying to get you to sign up for one. However, what most people don’t realise is that their rates are often some of the worst available on the market. If you plan on getting an auto loan, always check what’s available across the market before committing to a dealership.
Don’t Choose a Shorter Term
Generally, the shorter your car loan length is, the more you’re going to be able to save. Also, what most car loan shoppers don’t realise is that the interest rates tend to be lower as well. So not only will you be able to pay off your loan faster, but you will be able to pay a lot less in interest compared to a long-term rate. While your monthly payments may be a pinch higher, it can potentially save you thousands.
If they throw an interest rate in your face, it doesn’t mean that you have to accept it. Most of the time, dealers are more than willing to bring that rate down. However, if you’re going to take this route, make sure that you bring evidence to back your claims up. For example, if a local bank like Clydesdale Bank can beat their rate by 20 percent, then ask the dealer to beat their rate by another five percent.
Shopping for a car loan can be a scary experience if you don’t know what you’re doing. Before you set out and start shopping for a loan, take the time to educate yourself. That way, when you do walk into a car dealer, you can be assured you’re getting the best rate possible.
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