A new automobile is one of the largest investments most consumers will make other than buying a home. If you are planning to finance a new vehicle, it is important to approach finding the best automobile loan with all seriousness even though you may be excited to get what you want. According to Experian, the average price paid for a new car in 2019 comes in at a whopping $34,000, so this is no small loan to handle lightly. To make sure you get your finances in order and do things right, there are three smart ways to make sure you find the cheapest auto loan financing.
1. Make sure your credit score is in a healthy state.
This is a big deal. You may be able to walk out and get those “bad-credit” auto loans in spite of an ugly credit report, but this is never a good idea. Seeking an auto loan with poor credit is going to land you with a higher interest rate and higher payments. According to NerdWallet, in 2017, the average new car loan was given to consumers who had a credit score average of 713. This is a good healthy credit score to fetch you a fair interest rate on an auto loan.
2. Learn the art of negotiation.
One thing that many consumers do not realize whenever they seek auto loan financing is they do have the option to try to negotiate with the lender to get the best offer. Most lenders leave a little wiggle room in an offer specifically because some buyers will try to negotiate a better interest rate or payment term. If you have never negotiated for a loan, it is a good idea to do a bit of research to gain a better understanding of how it is done. Just a little negotiating can get you a loan that is more affordable to pay back.
3. Never settle for one loan offer without checking others first.
It is never a good idea to apply for a loan from one lender when you are trying to get a new car, accept their offer without asking any questions, and never look back. Check around, apply for loans at a few places, and see who is giving you the best offers. You can often use offers from other lenders as leverage to negotiate a better offer from a more preferable lender.
With a little research and a little time, you can land yourself with a new car and a loan offer that makes good financial sense for your budget. Reach out to Finansis for more information about obtaining cheap loans.