While most car shoppers spend hours looking over the price of different models available at the dealership, they often forget that new and used car financing rates can be just as important for calculating the overall cost of the vehicle when you consider loan interest. Keep reading to learn about some of the tips and tricks we have learned for how to get the best auto loan below.
Tips and Tricks for New and Used Car Financing
Improve Your Credit Score
If you are planning on purchasing a new or used vehicle in the next few months, now is the time to start focusing on your credit score. Little changes like paying off credit card debt can have immediate positive results in your overall score which can help you to secure better rates during your auto financing process. At the very least, you should go into auto financing with a clear picture of your credit health and credit score, so you know what loans you can qualify for. We suggest starting with a free credit score check online and going from there.
Don’t limit yourself to the financing rates available at the dealership. While they can sometimes be the best rates available, that is not always the case. We suggest shopping around at different banks online and in person and heading to the dealership when you have secured pre-approval. Then, you are in a good position whether the dealership is able to offer you better financing than you already have or not.
Look for a Short Loan with Low APR
While it is very important to consider the overall cost of your vehicle and your monthly payment amounts, many drivers stop there without considering the overall cost of the loan which can be much higher due to interest. We suggest getting the shortest loan possible and shopping around for the lowest APR to minimize the overall interest you will pay throughout the lifespan of your auto loan.
Do you still have questions about auto financing? Head to the Coast to Coast Motors dealership in Houston, TX and our finance team will be happy to sit down with you and talk about your specific needs and situation.