Finding the right car loan for you is as hard as finding the right car in the first place. Unless you’ve been saving for years for your car, or you have perfect credit history, you’re going to find it difficult to find the right deal for you.
Every car loan is different: they can be obtained from banks, car dealerships, private lenders or online institutions. It really is a jungle out there when it comes to car loans. Forethought and caution is always advisable, as is following advice from those who have already gone through the maelstrom before you.
1. Comb the Internet for the best deals
If your credit history isn’t ideal and you’re finding it hard to get financing from your bank or the car dealership you’re getting your vehicle from, the internet is your answer. There are a wide variety of online financial institutions that can lend you money relatively quickly and without any queuing and hassle.
You should exercise some caution when dealing with online financial institutions, as some of them aren’t legitimate companies and are only out there to scam you. Of course, there are plenty of reputable ones.
2. Go with your bank for lucrative extras
Your bank can be very helpful when it comes to getting out a car loan. Often, they have deals with particular car dealerships. If this is the case with your bank, you may be able to get a better deal. Alternatively, your bank will be able to advise if they think you’re paying too much for your car.
In terms of extras, they will sometimes throw in life insurance or disability insurance in with the loan.
3. Do your homework and negotiate
By doing all your research months in advance, as well as knowing exactly how much money you want to spend, this knowledge will come in handy when you’re bargaining with salespersons at the dealership.
If you don’t have the power of knowledge on your side, you’d be walking into the dealership like a lamb to the slaughter. It’s important to stand your ground and be able to negotiate well, rather than succumb to their high-pressure tactics when they’re about to close the deal.
4. Go online and then come back to the dealership
If you really want to go with the dealership because you’re attracted to the extras they’re willing to throw in (like maintenance and servicing deals) you could always go online to find cheaper loans for the same car
After you’ve printed out other alternatives, take them back to the dealership and try and negotiate with them. If they see that you’re serious about getting the best possible deal, they might be willing to bend slightly.