5 tips for getting the best rate for your car loan

Category: Cars

Are you getting ready to apply for a car loan? Receiving the best rate possible is ideal; after all, a low interest rate can save you money on the car and help to lower your monthly car payments. To try and get the best rate that’s available, it’s imperative to:

Have a down payment

Although qualifying for a car loan is possible with little to no down payment, you’ll have a better shot at getting the lowest possible rate if you have a large down payment. Having a large down payment is especially important if your credit isn’t the best.

Look through your credit report

Just like any loan, your credit score is one of the key factors when it comes to your car loan interest rate. It’s important to pull your credit report before applying for your car loan to see where you stand. Checking your credit report is easy, free, and can bring things to your attention that you may not be aware of. For example, you might apply for a car loan, thinking that you have great credit. However, you could end up with a high interest rate or your application could be flat-out denied because of something on your credit report that you don’t even know about. Whether it’s a delinquent account you weren’t aware of, or an error that shouldn’t even be there at all, finding out these things before you apply for your loan is crucial. You can take action to fix any credit blunders before you apply for your car loan, which will help to increase your chances at getting the best rate possible.

Compare interest rates nationally and locally

Find out what some of the best interest rates are currently, both locally and nationally. You’ll have a few different options when it comes to financing your car, including banks and credit unions. Getting some insight on what the average rates are can help you recognize a good offer when you receive one.

Negotiate

Receiving a terrific rate is nice, but don’t just settle on the first offer you receive. If you have a large down payment and great credit, you’ll have the upper hand. Even if your credit score is lacking a bit, you’ll still want to try to negotiate. Unless you’re certain that you’re receiving the best rate possible, don’t be afraid to walk away and find a different lender.

Ask the dealership what they can offer

Are you purchasing a vehicle through a dealership? If so, you may want to apply for a car loan through the bank they’ve partnered with. Since salespersons at dealerships often receive commissions on auto loans, they may be able to offer you the best rate possible—even if it means beating a good rate you already received.

If you need money to purchase a car, Peachtree may be able to help if you’re receiving long-term payments from an annuity or structured settlement. At Peachtree, we may be able to purchase some or all of your future payments and send you that money sooner in the form of a lump sum. Depending on how many payments you sell and how much money you receive, you may be able to buy a car in cash and avoid taking out a loan altogether. Imagine owning your car free and clear, and without the monthly car payments. Contact Peachtree Financial Solutions today to learn more about selling future payments for a lump sum of cash.

Nothing above is meant to provide financial, legal, or tax advice. You should meet with appropriate professionals for such services.

Tags: buying a car, car loans, credit, credit report

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