One of the most noteworthy lifetime purchases from a significance standpoint is a vehicle. Not only can the car act as a status symbol, but it also is a vital cog in everyday functioning. However, getting enough capital to purchase a car can be problematic — particularly if on a budget, or if one simply can’t pay for the vehicle in full up front. These individuals need not to worry — as auto loans are rather ubiquitous.
Pre-Approval Process
Negoatiating for a solid price at the car dealership can be an adventure. There’s a sense of stress for those who are inexperienced in ‘talking shop’ when it comes to delicately knocking down the potential price of a car one’s interested in.
While one doesn’t have to be a master negotiator to make the process work, it can help to show the dealership that you’ve got a pre-approved financing offer from a bank.
By doing so, this shows the dealership that one is indeed serious about purchasing a vehicle. But before getting to this step, a trip to the bank is needed.
Credit Score
For any major financial purchase, a credit score will come into play. A good score versus a horrible one could be the difference between considerable help from the bank, and a potential offer with high interest rates. Credit unions are also locations in which loans can be sought. Those with better credit scores will be able to receive a better loan from a lender. Without question, this is the single biggest factor when it comes to the interest rate associated with the loan. One can request their credit scores from a number of different publications (such as Experian, Transunion, Equifax, Annual Credit Report, or Credit Karma).Special Deals from Dealerships
Dealerships will often offer attractive financial packages as a way to lure prospective buyers into taking the proverbial plunge. These include cash back rebates, and low-percentage financing (in some cases 0-percent).
Some of these prices might appear too good to be true. For a first-time buyer, doing research is imperative. It won’t hurt to shop around from dealership to dealership in order to gather information. After comparing prices, the potential buyer should crunch the numbers and look at the total financial commitment rather than the surface-level cost which can be deceiving.
Image Source: Car and Driver