If you want to purchase a new vehicle this summer, make sure that you brush up on your negotiating skills. Here are three tips that will help you get a great deal on your car loan.
#1 Know Your Credit Report
The first thing you need to do is know what your credit report says. You will have more power if you know what your credit reports says. When you go in to get financing for your new vehicle, and you know that you have a strong score, you will feel more confident negotiating for a better car loan. If there is anything negative on your credit report, you will be able to investigate the negative claim and you will be able to refute it or explain why the negative strike on your credit report occurred. You don't want to be surprised by your credit report when you go in to a get a loan; knowing the details of your credit report will make it appear to the loan officer that you work with that you are in charge and aware of your financial life.
#2 Start Local
The next thing you need to do to ensure that you get a great car loan is to start locally. Many local banks and credit unions want to work with local consumers and are even willing to work with individuals who do not have perfect credit. Oftentimes, locally run banks and credit unions have more leeway over loan turns than bigger banks. Start with locally run banks and credit unions, then work outward from there to bigger national banks and online lenders in your search.
#3 Don't Focus On The Monthly Payment
Do not get caught up in the projected monthly payment. Any loan provider can give you a low monthly payment, all they have to do is extend the terms of your loan out longer in order to lower your monthly payment. Instead, look at what interest rate you are going to be charged and how long your loan will last. Ideally, you want to go with a loan provider who will charge you a low-interest rate; the lower the interest rate, the less you will pay for your vehicle in the long run.
#4 Go For The Shortest Terms You Can Afford
Finally, go for the shortest loan terms that you can afford. The shorter your loan term is, the less money you will pay out in interest for your vehicle in the long run and the sooner you will be the full owner of your vehicle. Do not be tempted by low monthly payments that will have to pay out for the next six or seven years, if possible, make sure that your loan terms are under five years.
If you keep the four above tips in mind while shopping around for a car loan this summer, you should be able to secure a car loan that is a good deal in the short and the long term. Contact a dealer, like College View Auto Sales, for more help.