Today, a lot of companies exist that allow you to have your auto loan pre-approved, and arranged before you even step on the dealer lot. Just imagine what an advantage for you that can be! You will no longer have to pay the dealer a ridiculous interest rate!
When you shop for a car loan try to look into different auto loan companies, 0 car finance including. Not all are created equal.
A several good options are:
1. An auto loan review site. These types of sites review the top car loan programs in the nation. Also share their findings with you for free. Any site that charges you for a “review” is just out to get your money.
2. Your local bank. They know that you are there, and you can often negotiate a better deal than the one the dealer may give you.
3. Buy a Used Automobile. Even though new cars are more appealing and attractive, they lose their value very quickly. Almost, within the first two years, a new vehicle will depreciate by 40%. The chance of an upside down loan is great, if the car was purchased without a down payment, and the interest rate on the loan is high.
4. Car values depreciate. This is inevitable. On the other hand, some vehicles are subjected to rapid depreciation, which means that the car buyer will always owe more than the vehicle’s worth (but typically this is not the case with 0 car finance offers).
A rapid depreciation is little cause for concern, if planning on keeping a car until the loan is completely paid off. So, you may acquire thousands of dollars in negative equity if you enjoy trading-in or buying a new vehicle every two to three years. One tactic for combating rapid depreciation is purchasing the car with a down payment.
5. Try to search for Lenders Online. If the only place you search for a car loan is the car lot, then you’re not going to know whether the rates they’re offering you are reasonable or not. Dealerships are notorious for telling people that they cannot get approved for a better loan because of their credit when, in reality, this is not true. Even with bad credit, on a secured loan you have to be able to get a decent interest rate.
Read about about car loan tips and tricks on 0 car finance blog.