Top 5 Tips for Getting Great Deals on Used Car Loans
Last week we talked about choosing a good used car to buy when you’re ready. The next step is paying for it, especially if you’d like to get a car that’s beyond your current cash on hand. That brings us to finding a good deal on a car loan to finance that good used car you located. If you’re shopping for a car and need to finance some of the costs there are five good ways you can obtain a car loan at the lowest possible interest rate and the best loan terms.
1. They Say Timing Is Everything! Interest rates on car loans float up and down with prevailing economic conditions. Do some research on current rates and key indicators that can tell you if rates are going to be steady, rising or falling in the near term. So, if you’re not in a super hurry to buy your car you might get a lower rate simply by waiting for the right time to take out a loan. 2. Know Your Credit Score Banks lend money at interest rates that match their level of risk – they use credit scores to determine that risk. If you have a history of meeting all your financial obligations on time and you don’t carry too much debt in relation to your income you probably already have a high credit score. Keeping that credit score high will keep your interest rates low. Find out your score before you decide to borrow money for your next car. 3. The Higher The Down Payment The Lower The Interest Rate This is called “Loan to Value” ratio. That’s a fancy way of saying the more money you put down the more secure a bank feels when lending you money. Typically, the more you put down, the lower your interest rate and your monthly payments. 4. Get A Co-Signer When you’re a young person just starting out and haven’t established a positive credit record sometimes you have to help banks know you’re not a high-risk borrower. That’s where a co-signer becomes necessary. Think of a co-signer as a referral from a friend or family member who’s also willing to guarantee the bank you’re a worthy borrower. Without a co-signer you may not get the loan at all or if you do the interest rate will be off the charts high making monthly payments that much tougher to maintain. 5. Shop ‘Til You Drop Banks are competitive and they make money by lending money. They really like auto loans because the car itself is collateral for the loan. So shop around – make sure each banker you speak with knows you’re comparing rates and terms at other banks. You’ll be delighted to find how much they want a customer like you and how willing they’ll be to offer you a great car loan.
On this episode of Ignition, Carlos Lago of Motor Trend magazine heads to a rain soaked Road America to test the limits of the all new BMW M3! Reworked from the ground up, the 2015 M3 ditches the screaming V8 of the last generation for an all new twin turbocharged inline six producing 425hp and 406lb-ft of twisting force. Designed to outperform its predecessor in every measurable way, has the M3 become numb in its quest for higher performance, or will it deliver on its promise of being the best driving M yet? Let’s find out in the video below…
Steering is one of the things we take for granted in our vehicles. So, what are some of the things you should know about taking better care of your steering system? I like to think of steering in two areas. First, the power assist, and second, the actual parts that steer the vehicle. I’ll bet most people under forty have never driven a car or truck without power steering.