Are you in the market for an auto loan because you need to purchase a car for your business? If so, you’re not alone.
Methods of public transportation and rideshare options such as Lyft and Uber have become more and more popular over the years, but statistics show that 91% of US households still own at least one car.
At one point or another in our lives, there comes a time when most of us have to choose a new vehicle. And that can also mean choosing a new auto loan.
High interest rates, lender jargon, fees, and more can almost take the fun out of buying a new car. Wouldn’t it be nice if there were ways to put yourself in charge when you’re choosing an auto loan? Lucky for us consumers, there are!
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Skip the Dealership
While dealers may offer the occasional incentive, such as a cash back rebate or less expensive financing options, chances are the person buying the car does not qualify for the deal. Even if they did, these auto loan offers tend to fall in the “too good to be true” category, as the purchaser finds they are overburdened with unnecessary fees and unfavorable terms.
The first step to putting yourself in the driver’s seat when it comes to financing your vehicle is to choose an independent lender. With the information readily available on the internet these days, it’s easier than ever to compare auto loans fast online. You’ll be able to read customer reviews, check out the lender’s pros and cons, look up their track record, and even find out what kind of rates you can expect from them.
The Power of Credit
Another fantastic online tool, Credit Karma, allows anyone to view their credit score for free. By doing so, you can gain better knowledge about the rates and loans available to you. The higher your credit score, the better your position for negotiating a great deal on an auto loan.
If you find that your score could use a little boost, there are ways to do that. Pay off any existing loans or outstanding bills to quickly raise your number. Even a little increase can open up a wide variety of lending opportunities and rates.
Knowing your credit score ahead of time is the ultimate tool when it comes to securing a loan. Combined with a loan calculator, you will know exactly the interest rate and payments you deserve. There’s no better way to put yourself in control!
Know Your Options
One of the most popular options is the choice between a fixed- or variable-rate auto loan. The difference between the two is that a fixed-rate loan will allow you to pay the same amount every month, while the variable-rate loan will change your interest based on an index. If you plan on borrowing the funds for a very short term, the lower rate of the variable option can be a good idea, but those looking for longer terms could find that a variable rate can increase drastically as time goes on.
If you’re smart, you will use your credit score as your bargaining chip to secure a reasonable fixed-rate auto loan.
As for shorter and longer terms, it truly comes down to what you can afford each month. Opting for a shorter term can save you thousands of dollars in interest, but make sure you can meet the requirement. If you have to take a longer term, that’s okay. Just be sure to find a decent interest rate to save yourself the most money.
Be in Control
Using these online tools will allow you to speak to lenders with confidence and secure the best loan possible. Skip the high interest rates at the dealership, compare auto loans, and get the rates that you deserve on your new auto loan.