Getting the lowest auto loan rate possible is one of the most important steps of the car-shopping process. However, the terms of a car loan can be overlooked when you are searching for the perfect car at the right price. And if you aren’t informed, it can cost you big, especially when you choose dealer financing.
When shopping for auto loan rates, being informed and knowing which rates you qualify for will help you save money. But have no fear, there are ways to get a lower rate on an auto loan financed through a dealership.
How Dealer-Financed Auto Loan Rates Are Determined
- Lender: Depending on which bank or credit union the automaker is partnered with, the rates offered can vary.
- Vehicle make, model and year: Brand-new cars generally receive the lowest rates. Auto loans for used cars generally come at higher interest rates. Also, the older a car is, the higher the interest rate offered.
- Loan terms: Though some automakers have recently extended 0-percent financing to longer-term loans for promotions, generally speaking, the longer a car loan, the higher the interest rate.
- Credit score: As with any loan, customers with impeccable credit are given the best auto loan rates. Car loans for bad credit will likely end up with higher interest rates.
How to Get a Lower Rate on an Auto Loan at a Car Dealership
Everyone wants a low-interest loan, but getting it can be tricky and sometimes confusing. Knowing how to negotiate with your car dealership is key to getting the best auto loan rate for your next car purchase. Here are the best ways to negotiate a better rate.
Know Your Credit Score
Bringing your credit score with you to the dealership will only work in your favor. In the event there’s an inconsistency between what the dealer shows as your score and what you think it is, having proof can make a world of difference on the rate you get. Continua a leggere