Image courtesy of Dita Actor http://www.flickr.com/photos/ditadata/7101337175/
America invented the automobile and modernized the ancient highway system to accommodate it, yet decades later people still do not understand the secrets of getting the best car loan possible. Literally generations have passed since the advent of the affordable motor vehicle, and yet people still get denied when they could be approved, and most pay more than they have to simply because they do not know the four fundamental secrets to getting the best auto loan possible.
Secret #1: Shop Loans Nationally
While auto lots are still the norm when it comes to buying new cars for some, the old methods of trusting a swindling salesman to get you the best with his buddies at a few local banks is done. This guy might get you a great looking deal on the vehicle and make it all up on the back end with his referral bonus on a less than prime loan. Consider this the ultimate example of how everything that glitters is not always gold, and since the bank is the one setting the rates the salesperson may even play innocent or coy with the facts and say that he has no control over such things!
The fact of the matter is that shopping for a loan locally is like limiting your horizons artificially. The country is literally brimming with lenders looking for your business, so why ignore them? By cutting out the middleman looking for a referral or kickback, you are potentially saving a ton of money. Add to that the fact the competition drives down rates and fees just helps you become that much more secure in knowing that you will be getting the best possible rate. For those on the fence of being approved will have their chances of being able to loan money by increasing the number of lenders that they shop, and also increase their savings just like anyone else.
Secret #2: Credit is EASY to Fix
Not many people truly understand credit, and the result of that lack of education is a wealth of misconceptions including the worst of all: credit takes too long and too much effort to fix. The fact of the matter is that the poorer your credit is, the faster and easier it is to fix! Just like anything else, there are diminishing returns over time, and getting bad credit to a reasonable credit level should not take very long at all. It could all start with something as simple as paying down a few credit cards or debts while maybe getting a few new, possible secure, credit cards and maybe opening a store credit account or two as well. The net result could be a very swift and substantial increase in credit score in just a few months, but this will probably be preceded by a small dip in overall credit as new accounts are opened.
Secret #3: Look at Used Vehicles Coast to Coast
Remember how shopping for a loan from coast to coast was a good idea? Guess what…so is shopping for a vehicle, but only if you do it smartly. Know what you want and what it is worth, and be sure to have quotes on transportation, state taxes, and use a qualified inspector whenever possible. Getting a great deal on a vehicle makes it easier to get a loan and the terms of the loan would generally be more agreeable than it would with a more expensive vehicle.
Secret #4: Save Money on Auto Insurance Too
Never forget that a new vehicle or used vehicle loan is going to require insurance in almost all cases. Thus, it is fair to say that if you are not looking for the best auto insurance deals then you are essentially wasting money on something immediately and directly tied to your auto loan. The secret to getting the best rates on auto insurance is to…you guessed it, shop on a national scale. Skip wasting your time at local insurance agents’ offices go directly to the source and cut out the middleman. Sorry insurance sales professionals, but it might be time to pick a new career path…
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