Lowest Car Loan Possible

Lowest Car Loan Cost Possible

I really don't mean to get you all depressed about buying car thinking that it is a no win situation that you will pay for the entire time you own the car.

But I do want to get across the seriousness of the car buying experience.

Dealerships and salespeople are not your friend or ally when it comes to negotiating your deal.

It is solely up to you to do your research and get yourself prepared to get the best price you can on both your new car, your trade-in (if applicable) and NOT to forget about getting the lowest car loan cost possible.

This page will be a bit longer but stay with me, take the information to heart and you'll be able to get the lowest car loan cost possible.

There are some strategies available to you to help you keep your car loan costs as low and manageable as possible. Remember the goal for this piece of the whole car buying objective is to keep your financing costs as low as possible and shorten the amount of time you are stuck in an upside down car loan.

A Very Important Note!

And while we are on this subject, get a copy of your credit report and go over it.

Know what your credit score is and how you rate. If you don't know how to interpret your credit report, do a bit of research so you do. This is time very well spent.

Aside from knowing the strength of your credit heading into a car finance deal you should check your credit regularly for incorrect information or worse yet some type of suspicious activity.

So do get this done.

The best and most comprehensive credit reporting and monitoring services is Equifax Credit Report. Do this right now while you're here. The information you receive could literally save you $thousands$

First of all, line up your loan approval at your own bank if possible. This will enable you to know exactly what you can borrow the money for on your own.

And, by the way, if the dealership F&I person offers you a rate that is higher than what you already know you can get at your bank, for goodness sakes don't just flatly turn down the dealership's F&I department's offer...... can you not smell an opportunity to negotiate here?

Work the dealer for all you can get on the finance rate!

The key to negotiating just about anything is to get competitive bidding for your business going on. And trust me on this one.... the interest rate you are quoted at the dealership is most definitely negotiable, especially when you have put yourself in a strong negotiating position by knowing the interest rate you can get at your bank. Don't miss this opportunity. It can literally save you thousands of dollars.

Even if you don't have a loan lined up at your bank, the dealer doesn't need to know this! Tell the F&I person that you want the rate at 'dealer retention'. This means you want the interest rate that the bank is getting the money to the dealer at and not a 1/2 point higher. And stand your ground.

Some simple math: put as much money down on the car as you possibly can.

I know this sounds and probably is painful up front, but this will lower your financing costs, you won't be nearly as upside down in your car, and you will be able to get the best financing rate possible when you pony up your own money in the deal before asking a lending institution to do the same.

If you don't have the ability to put down a good down payment on the car, at least try to come up with enough to cover the taxes and fees. Since you are going to be financing the car and be immediately upside down in the car why would you want to pay finance charges on the taxes and fees? Certainly paying interest on a loan that includes taxes and fees in it, isn't a good financial strategy.

Within the boundaries of your budget, finance for the shortest possible term. Remember buying time isn't free by any stretch.

If you are a home owner, you could consider financing your car via a home equity loan. Depending upon the current interest rate and tax climate this could be a very viable option. If you are considering this route, be sure to discuss the details with your accountant first.

As you shop around and research be sure to investigate all of the manufacturers rebates and dealer discounts available. A little knowledge here can really help you. Just because a dealer may be receiving special financing and rebates from the manufacturer doesn't mean they'll gladly pass this along to you..... especially if you don't bring the subject up.

You may want to check with your insurance carrier on the possibility of securing your car loan from them. Many companies do offer auto loans for qualified customers.

The financing research and leg work you do is a must.

Remember financing is a big piece of the puzzle when you're trying to get all the car buying pieces to fit. Poor preparation in this area can literally cost you a bundle. And it does you absolutely no good to work hard on the new car and trade in aspects of the deal if you give it all back in the financing department at the dealership!

Financing is the point in the deal where you command the greatest position of strength in the negotiating process. By this time both you and the people at the dealership involved in putting your automobile deal together have invested a fair amount of time convincing you to buy. Remember, you are the customer, and no deal gets done without you.

Finance people are not your friend. They are a part of the deal process. They are every bit as much a sales person as the sales person or the sales manager. Much of their annual salary is based upon the additional coverage's and add-ons that they can sell you...... and this includes the interest rate they quote you, remember. Not very often is their commission and spiffs (a car term used for cash money bonuses) based upon the sale of the car at all.

If you feel uncomfortable in the finance office. If all of the sudden there seem to be additional costs added on to what you thought you agreed to, or even if you don't feel as though you're getting straightforward answers from the F&I person, you can walk. Again.... you can walk!

And believe me, no one in the dealership wants to see you head for the door at this point. Don't be weak. Anything at all start going sideways..... be prepared to thank them for their time. If they let you leave without some serious attention brought to your concerns then you should be glad that you did.

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