Auto Finance Tips

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What should you do when financing a car? There are five things that are very important to make sure you get the best interest rate and financing terms. What is the importance of your credit score and how does it affect your loan? Can you negotiate your loan or do you have to accept it exactly the way it is?
1. Check your credit score. Knowing your credit score is the most important thing you can have on your side when you are looking for car financing. Your score determines your interest rate and loans terms and if you know it you have an advantage when negotiating your loan. Your score along with your income determines the amount you qualify for. If your credit score is low you can expect to pay more in interest and qualify for a lower loan amount.
2. Research posted interest rates. Whether you are looking at a new or used car you should always research the current interest rates for the lowest available rate. Never take a bank or dealerships word on their rate being the best always do your own research.
3. Only submit to a credit check when you have found a rate and term you are comfortable with. If you don’t like the terms never submit to a credit check, multiple credit check can damage your score.
4. If you are buying a new car make sure to check the current manufacturer promotions. When you are shopping for a new car always go to the manufacturer Website to check for any current promotions because not all dealerships will tell you about them. Dealerships are out to make money and not all of them like to advertise promotions if they will be losing money on the sale.
5. Always be comfortable with the contract. When you are ready to sign you financing contract make sure you read the entire contract and ask questions if you don’t understand something. You do not want to walk away unsure of something you will be paying for the next 3 to 7 years.
Car financing is like buying make sure to negotiate your terms never take the bank or dealer’s word on anything if you don’t like something shop around you may just find a better deal. Good luck.


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