Would you like to purchase a car? Each year, thousands of consumers apply for loans to fund their car purchase. A car could be an expensive investment.
How would you be sure to find an affordable car loan deal to save money? Consider the following tips:
The internet is a great tool for comparing deals – regardless if you are in need of a personal loan, a car loan, or mortgage. You can easily compare car loan lenders online by looking at a broker’s website or looking into an auto loan company’s website. Most lenders offer free loan quotes so you can figure out how much your monthly payment will be.
Check the loan provider’s background.
Take note that not all lending companies that offer car financing loans are legitimate. In your search, you may come across fraudulent lenders that offer attractive car loans especially to people with bad credit. If you can’t get approved for a regular car loan because of poor credit, quick car loan advertisements can be enticing.
Before requesting for a car loan quote, spend some time to do research about the lending company’s reputation. Is the lending company reputed to provide reasonable loans to consumers? How long has it been providing financing services? Is it licensed and recognized by the government?
Is it registered with the Better Business Bureau (BBB). You can check the BBB’s website to see the lending company’s rating and performance. If there were complaints or lawsuits filed against a lender, you will be able to check it from the BBB’s record.
Do further research.
After exploring the market, narrow down your choices to at least three different car loan lending companies. Be prepared to do a bit more investigation about each lender’s policies, terms and conditions.
Read the fine print to be sure that you will not be subjected to hidden fees and unreasonable terms. Remember that each lending company has its own set of rules so it’s important for you to be aware of the exact terms right from the start.
Avoid multiple loan applications.
Don’t try your luck or see which lender grants the quickest approval by submitting multiple applications to different car loan companies. Do your research first and once you have found a potential lender, that’s the only time you should submit a car loan application.
Be sure to check the lender’s requirements particularly with regards to your personal credit score and credit history. Some car loan lenders have strict standards and only grant financing to people with good or excellent credit. If you have an imperfect credit score, submitting your application to the wrong lender can lead to rejection.
Check your credit report.
It is also recommended that you order a copy of your personal credit report from the three major credit bureaus (Experian, Equifax, TransUnion) prior to submitting your car loan application. This way, you will be aware of your exact credit standing. If you have not yet received your free report this year, you can order it from www.annualcreditreport.com.