When it is time to get a new set of wheels, it is time to get a new set of wheels! You do not want to be kept hanging around waiting for some auto loans clerk (who is, incidentally, on commission) to make a decision as to whether or not you get an auto loan! Here are five top tips to help you out when you go looking for that new auto or auto loan.
1. Work out what you can afford to repay. It may sound like an obvious statement but, calculate your budget so that you are not going to be overstretched. Then use any of the free auto loans calculators to estimate how much you can borrow. Once you know these figures you will be armed against the pushy sales man who wants to get more out of you! Think of it as knowing your limits.
2. Know your credit score/rating. Check out your credit rating, very few people think to do this, ensure there are not any mistakes on it. This happens more often than you may think. Once you are happy that it is correct and in the best shape that you can make it you will then be ready to get an auto loan.
3. Get pre-approved for an auto loan. The loans offered by the dealerships are not always the best, or you may not always be offered the best loan deal that the dealership has. If you can turn up with a good pre-approved auto loan from another source, you can use it as a bargaining chip to see if the dealership will better it or their first offer. If they will not better it then at least you know what you have to play with even before you go out.
4. Buy smart. What I mean by that is know what you want and stick to it. Do not let them add untold “extras” to push the price up. If you can get the extras included in the deal then great, but do not get bullied into agreeing to have things you do not actually want or need!
5. Be prepared to walk away. There are still deals to be had out there but you may have to shop around a bit to find them. If the dealership is not offering you what you want, if they are pushing you towards a different vehicle etc. then walk away- they are trying to make a commission check, they do not have your best interest at heart, they have their pay check at heart!
When all is said and done, you have to look out for yourself. By making careful preparations before you go shopping you should be able to come home with the car you want financed the way you wanted. The auto loans industry is there to help you but it really only works if you are prepared to help yourself. Regardless of your situation, whether you have bad credit or not it should still be possible to get a deal that you are happy with if you are willing to put the work in at the beginning, these tips should help you achieve that.