Saturday, June 23, 2012

Arrange Your Car Loan Before Going to The Dealer

English: Car Dealer, Eastern Avenue, Gants Hill
 (Photo credit: Wikipedia)

Many people believe the best place to get your car loan is where you buy your car. It sounds right, because the dealer finances so many cars they must be giving the best deals. This seems to make sense but you probably will find better financing deals off the car dealers lot.

Just like when you are shopping around for the best deals on things you normally buy, why not shop around for car financing? How to get car finance means seeking out competitive loan vendors who will often give you the lowest interest rate. Competition between companies will give you the best results. But some people may be worried that multiple applications and credit inquires will damage your credit score. This is not true because the credit reporting agencies know this kind of multiple inquiry is not abnormal and they only count the inquiry as one. 

Car dealerships are trying to squeeze the maximum profit out of every car sale so a few points of interest on your car loan helps their bottom line. Margins are tight these days on car profitability so you may find out that you are going to pay a little higher interest rate when financing through your car dealer.

When you walk into your car dealers office and you already have arranged financing your car dealer looks at your deal as a cash purchase. You know the car dealer prefers getting a cash payment for the car purchase. This is your leverage in negotiating. A salesman will have to give you a better deal because they don't want a five figure amount of money to walk out the door into someone else car dealership. 

Knowledge is your advantage in car purchasing. Knowing the product well and its appropriate purchase price will make your car purchase a positive one. Also having payment options on a firm foundation will only increase your chances of getting the best value in your car purchase.

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3 comments:

  1. When we go get a car loan, we have to contact a finance dealer who has knowledge about loans and provides proper information.
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  2. This comment has been removed by a blog administrator.

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  3. I am thinking to buy a car loan. The tips provided by you will be beneficial for me. Keep on posting.

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