December 06, 2001
By: Bev Dodd
Car loan: Shop before you buy
If you are considering applying for a car loan, ordering a copy of your credit report may well be the best place to start. Why? Because it's also the first thing a potential creditor will be looking at, and even if you pay your bills on time, you will want to ensure that all the information in your credit file is up-to-date and accurate before you get your car loan. We'll discuss this more below.
If you need to borrow money to buy your new car, consider the following sources: The car dealer: Many offer generous terms -for example, interest at 1.5 percent or 2 percent- especially in the early fall when the dealers are anxious to clear out stock to make room for new models. But be sure these low interest deals don't require you to buy expensive extras. Banks you do business with: Dealer financing isn't your only option. Before you buy, contact the banks where you have your savings, checking, credit card or business accounts. Ask about the going rate for a car loan. Also ask about discount rates for loans tied to your other accounts.
Remember, when shopping for a car loan, car financing is just another product a dealer sells. There can be many benefits of financing online: Lower APR than dealers, they Fed Ex your check the next day. You get approved in minutes for new car loans, or used car loans. You avoid dealer warranty and window etch car loan scams.
Don't walk into a car dealer looking for a car loan without knowing how much you can buy that car for from other sources. If you don't have a consensus of a good price quote from other sources, and you don't know in advance what you should be paying, you're in trouble and you'll pay too much.
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Auto loans | Bad credit approval | Consolidation loans | Home buyers | Personal loan online | Refinance loans
Bev Dodd is a successful author and publisher of http://www.family-refinance-consolidation-loans.com.
Many have commented that her website offers the best recommendations, links and information on loans, mortgages and financing.