It really is not all that hard to get a good deal on a car. Part of the trick, however, is to be informed about the process and the terms that may be thrown at you as part of the deal. The more informed you are – the better prepared you will be to get that really good deal. Here are six steps for you to follow to be able to drive away with an auto loan of your choice.
1. Check Your Credit Score
This definitely needs to be your first step. Because your interest rate and credit limits are both tied to your credit score, you need to make sure it is in good repair when you apply for your auto loan. Mistakes can be entered on your credit report that effect what you might get, so get a copy and look it over. Correct any mistakes that you find, and then you will need to wait between 4 to 6 weeks to make sure they have been entered and corrected.
2. Search For Quotes Online
After that time period (if there were mistakes), you want to go ahead and do an online search to get quotes for car loan deals. You want to get preapproved for a loan so that you know exactly how much you actually can get. Look over the interest rates and the time period you have to pay back the loan. Also, check other factors that enter into the loan, too, such as lender fees.
If you apply for a number of online quotes within a short period (about 14 days), it will not hurt your credit score. By doing it this way, it will be counted as one loan inquiry.
3. Get Preapproved
Once you find a lender or two that have good quotes, you can go ahead and apply for an auto loan from them. This will enable you to be preapproved, and they will send you a blank check that will expire in so many days. This gives you the time you need to find the car you want.
Preapproval allows you to have more power with the dealer since it is just like having cash. You will be able to get better prices and have more bargaining power.
4. Choose A Car
Once you know the credit limit, select your car within that price range. Start looking on the Internet to learn more about it.
5. Research The Car
Find out all about the car that you can. This means you should know its cost, its retail price, and the various options that the car has. This information will help you when you go to negotiate with the dealer. Be sure to look around the Internet to see what that car is actually selling for. Sometimes individuals may be able to beat the dealer's price – but one of these will usually not come with a warranty.
6. Negotiate And Buy Your Car
Go to the dealership and begin to talk some serious terms about the car you want. If you are not good at negotiating – take a friend along who can help. After coming to terms on the price you want – sign the agreement and drive away with a good deal.