There are lots of great bargains to be had on both new and used autos these days, which gets consumers excited to go hunting for bargains. However, most of these shoppers fail to think about the loans they will need to purchase their vehicles before they actually go shopping. This is a big mistake. Saving points on the interest rates on your car loan is an easy way to save thousands on the payments over the life of your loan. Here is a look at five ways that you can snag great car loan rates that will make even rich people envious.
1. Zero Per Cent Interest Rates
Of course, if you can get them, zero interest car loans are the way to go. However, you will need to bring in a hefty deposit in most cases to get these zero interest auto loans.
2. Have a Lot of Cash On Hand
Even if you are unable to find a zero interest loan that suits your buying purposes, you will still usually save a bundle if you have a lot of cash on hand when you are car shopping. It gives you more buying power, and it will almost surely lower the interest rate you pay on your car loan.
3. Shop the Loan Out Separately
There is no law that says you have to go through the dealer for your financing. In fact, you will have a better chance of getting the best interest rate if you go outside the dealer for your financing. There are many options available to you in obtaining a car loan, an example being CB Online.
4. Clean Up Your Credit
Of course, those with the best credit ratings are going to get the best deals on their auto loan interest rates. If you want to have the lowest interest rates, you want to take steps to clean up your credit before you go shopping for a car. The key to good credit is to stay current with your payments. It is also important to have as little outstanding large debt as possible. Make sure to periodically check your credit to ensure that you don’t have any mistakes on your credit report. It can take several weeks to months to get your credit report cleared of mistakes, which means you need to get them fixed as soon as possible.
The key to getting car loan interest rates that will be the envy of others is to plan for your loan before you go auto shopping. This will put you ahead of the majority of other buyers right from the start, and it will allow you to approach dealers and lenders with confidence to score the best deals.
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