Monday, November 20th, 2017

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Car Loan Quotes & Pre-Approval

Fewer people are buying cars and car salesmen are much more eager to make a deal. Big discounts, cash back, and generous financing terms are just a few of the things you can take advantage of. The best way to get a good deal on a car is to go into the dealership pre-approved for a loan. The first thing you should do is get a few car loan quotes.

Getting pre-approved for a car loan put you in the driver’s seat. You no longer need to go down the road of dealer financing. Even better, you won’t have to sacrifice dealer rebates and/or discounts in order to get a lower interest rate.

After getting your car loan quotes and pre-approval, you walk into the dealer knowing how much car you can afford. Best of all, you can avoid having to come up with a large down payment.

Before You Get Pre-Approved

There are a few things you need to do to get pre-approved. Like any other loan you must know your credit score. The higher your credit score, the better your interest rate. In addition to your credit score, you will have to demonstrate that you have enough income to repay your loan. Finally, your car will serve as collateral for the loan.

Before you apply for a car loan get together your credit report and sources of income, including pay stubs, and any thing else such as alimony or other secondary forms of income.

Most dealerships offer their own financing. Before you decide to take this route, make sure that you have checked out other options. It’s easier to qualify for financing with a dealer but you should determine how much you are going to have to pay over the life of the loan before you agree to it. With dealer financing you should expect to pay the sticker price plus an additional 7% to 15%.

If a reasonable interest rate is not available to you, it might be a good idea to wait until you can raise your credit score or make a more substantial down payment.

Don’t forget: if you walk into a car dealership pre-approved for a loan, you can demand a better deal. Negotiate for rebates, better trade-ins, and extras. After all, you are now a “cash” customer and they want your money.

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