Car finance companies do not have your best interests at heart. They are looking to make money and that means they will try to get away with whatever they can. However, there are ways that you can prevent them from doing that and get the absolute best deal you can on your auto financing. The issue is that you will have to do a lot of work and research in order to do so, but it will certainly be helpful if you’re willing to do that.
Before you even start talking to somebody about financing, you should make sure that you’re familiar with your own credit. Take some time to go and get your annual free copy of your credit score from the three major credit reporting agencies, to start. Understand that the one that you get may not be the exact same score that is used to determine your loan, but it will be close enough so as to make no difference. Once you have that, start to look around and see what is considered a good score in your area (if, for example, you’re buying used cars Charlotte NC, it’ll be different than getting the same cars in New York City). Be sure to focus on car loans, since a good score for a car is a lot less than a good score for a house.
Once you have that in your head, start looking around for a loan. Shop your loan separate from your car, speaking to car finance companies instead of specifically working through the dealer. Generally, you’ll get a better rate this way because you have someplace to go if the rate you’re being offered isn’t very good. Checking with online lenders is a new way to get some really fantastic deals on car loans. You should also be sure to shop the total of the loan rather than the monthly payments. The total is what you will end up paying in the end (plus interest), but your monthly can be made artificially lower (and therefore more enticing) by spreading it out over a longer period of time, which also increases the interest at the end.
That is related to the point that you need to understand about car finance companies: many of them will not offer you the best price they can give you immediately. They expect that you will negotiate, so be sure you make an effort at it. Tell them that you are working with other companies, that you’re shopping around, and let them work to keep your business.
It’s a real pain to find the absolute best price on your car loan, but it can literally save you thousands of dollars. So ask yourself: is your time worth thousands of dollars? If so, then you’ll do what you need to in order to get the most from car finance companies.
Many other companies do not have your best interest at heart either. To read about how some credit repair companies can also mislead you read here.