 Auto Financing: "Loan Shop" And Save Money
Posted by carsandtrucks on Monday, October 15 @ 15:37:56 PDT
I hate to sound redundent, but first and for most do your homework. You should go "loan
shopping" before you go car shopping. Use the internet to your advantage. Know your
credit score. The lower your score the higher the interest rate you will pay. You can
find out what your credit score is before you visit the dealership. In fact you can get
pre approved at some very reputable financing insititues on line. Each time a dealer runs
your credit report it lowers your credit score. If you are a border line credit risk and
a dealer shops your credit application around to several banks, you may end up having
your loan rejected. Another consideration is manufacturers offered rebates that are
attached to financing with the credit arm of the manufacturer. It makes sense to take the
rebate even if the financing is not the best deal. Simply refinance the vehicle at the
better rate later. This way you get both the rebate and the lower rate. One final
thought. If you do
not have enough equity in your trade or enough cash to make up a down
payment of somewhere around 15-20% consider gap coverage. This product will protect you
should you lose your vehicle to a theft or accident.
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