You have spent the last several years working on your credit and now you are ready to go apply for a car loan and take advantage of your pristine credit profile. Your good credit is certainly going to help you get a great car loan, but you can do even better if you take the time to put together a deal that will get you a low interest rate and better loan terms.
Shop Around For A Good Lender Deal
Car loan lenders often have special promotions going on that they use to bring in new clients and expand business. Your good credit would make it easy for you to take advantage of low interest rates or any other kind of promotion that a lender is offering, like an instant car loan, which would save you even more money in the long run. A simple drop of one percent in your interest rate can save you hundreds of pounds over the life of the loan.
Talk To The Dealers About Financing
One of the biggest mistakes that people make when it comes to buying a car is they run away from dealer financing. If you are considering the purchase of a used car, then you may be justified in avoiding the financing that the dealer is offering. But if you are trying to buy a new car, then the dealer may have a better financing offer than the lender. In some cases, car manufacturers are allowing dealers to offer financing with no interest attached to it, and they may also add in a rebate as well. When you are taking your good credit out to buy a car, make sure you investigate what the dealers have to offer as well.
Negotiate The Car Deal First
Getting pre-approved for your car financing is a good idea, but it should only be done to secure the fact that you will be able to finance your purchase. You should leave the actual interest rate and terms negotiations alone until you have found the car you want. If you go to a dealer and manage to negotiate a deal on a car that is well below the book value of the vehicle, then your good credit could score you an extremely low interest rate. Lenders like it when there is a lot of value in an car, which is why lenders would be more open to lowering your financing interest rate if you get a great deal on the vehicle. Here’s a guide to negotiating a car purchase that’s well worht looking into.
Put Down Money Of Your Own
Yes, the lender told you that you could get your car loan without a down payment, but think about it before you sign the deal. When you put down money of your own on an car loan, then you can negotiate for a better interest rate and save yourself money in the long run.
A good credit score is just the beginning of a good car loan deal. If you want to save money on the overall cost of your car loan, then use that good credit score as leverage for an even better deal.