5 Useful Tips for Finding the Best Car Loan
Congratulations, you have succeeded in negotiating the best price on your new dream car! But remember, you have won only half the battle. You further have to find the best car loan too. How would you find it? There is no rocket science for it; but certainly there are some tips which may be helpful to you. Here they are.
1. Find Loan Separately
Before you shop the car and negotiate its price, start finding loan with banks, credit unions, online lenders and even your car insurance company. For example, www.newcarcanada.ca offers Canada’s fastest car loan approval process, by just filling out a short form and getting your loan approved within 24 hours or even less, even if you have a bad credit record! Find such a loan separately than the car, which gets you prequalification for a loan, which allows you to approach the dealer with a blank check.
2. Shop Loan only for a Couple of Weeks
Each time when you try for a loan, your credit score descends and it makes a bit tough for you to get a prime-time loan. However, if you limit all your loan application process within a period for a couple of weeks, the process is counted as only one inquiry.
3. Consider Total Loan Rather than Monthly Installment
The monthly installment should be considered only while you think privately upon how much you can spend on your car. Otherwise, you should not discuss it. Some lenders may highlight monthly payments to evoke you to borrow more by increasing the number of moths you have to pay. It’s their way to earn more on interest, and you need to use your aging car for longer.
4. Find the Correct Tools
You should decide what is best for you. For example, do you find cash rebate the best or ultra-low dealer financing? Using an online loan calculator, you can find which one is the best for you, within seconds. Often, cash is the best choice.
5. Stay Away from Conditional Loans
Unless you finalize each and every factor including interest rate, amount of down payment, duration of loan, monthly payments and so on, never buy a car from the dealer. If the deal is “conditional” or “contingent”, they are likely to change it later and you could be trapped in an unbeneficial deal.
Following these rules, you can have a satisfactory car and car finance deal which will offer you a peace of mind in the long run.