When you decide to take a car loan, you want to get the best possible rate. In order to get the best options for your car loan, you should follow these tips:
- Know your credit score
To know what rates you can expect from lenders, you really should know your credit history record. So make sure you have checked your credit report before starting conversations with dealers.
- Fill out a short and simple application form
Many companies that offer car loans have the possibility to approve you for financing online. You fill out a really simple application form and submit it. They will give you a call back to give you a feedback on your application.
- Know the financing terms
The period of time you choose to repay your car loan will certainly affect your rates and monthly payments. The longer the repayment period you choose, the higher the interest rate, and the lower the monthly payments. The logic is, the longer the loan duration – the bigger the interest. However, when a car is expensive you need to consider the amount you need to pay monthly.
- Down payment options
Although down payment is often unnecessary, experts would advise you to put about 20% money down, so you may be able to qualify for lower rates. However, this is totally up to you to decide. Sometimes, you can get good rates without putting any money down.