New Car Loan
Getting a new car loan at the dealership might be the easiest and most convenient way to get a new car loan, but it also might be the most expensive. You can get a good deal at the dealership if you are ready to do some serious negotiating and are able to walk out if you can't get the deal you want.
With so many dealerships, lenders, and cars available, the buyer has the advantage.
Where to Get a New Car Loan:
There are many lenders for new car loans: through the dealership, your own bank, credit unions, and you can browse online to comparison shop other offers.
Terms to Understand:
The Prepayment Penalty is a fee if you pay off the loan before the end of the term.
Simple Interest Loans are based on a flat rate interest.
Zero Annual Percentage Rates:
To get a 0% APR on your new car loan you will have to have a stellar credit report, a short payment plan under 3 years, and often your selection may be confined to certain vehicles.
New car loan warnings:
Look out for "subject to financing" in your contract and be sure that when you are finished with your paperwork and have signed everything, that it is a done deal. Sometimes it is a trick to get you all set up and out the door, only to call you back to tell you that, because of your credit score, as if they didn't know, financing will cost you more, and if you want to keep the car you will have to make higher payments.
Each time your credit report is scanned, it lowers your score, do not approve a credit check unless you are sure you want to go with that financer.
Conclusion:
If money is of no concern, then walking into a dealer, selecting a car and accepting a moderately negotiated deal might suffice. But if you are a shrewd businessperson or on a tight budget, be ready to negotiate. By doing some research before you accept a new car loan, you can be prepared to negotiate better. Know what you want to pay and what a reasonable offer is. Understand the paperwork and know what you get for your money. Make sure to get the best annual percentage rate.
