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Tips On How to Get a New Auto Loan

23 June, 2011



If you are in the market for a new auto loan then the following tips will enable you to get the best deal. Getting financing for a new car highly depends on your credit score and the terms and conditions of the lender. It is important to shop around as well as come up with a budget of the amount you can comfortably afford to be paying off every month. You also want to get the lowest interest rates possible as these affect your monthly repayments. You should be able to get the sleek new car you have been wanting and there are many lenders willing to provide you with an auto loan to make this wish come true.

The first step in the process of getting a new auto loan is to find out your credit score by obtaining a free copy of your credit report. Make sure that the information on your credit report is accurate as this will determine the kind of deal you get. You will find that most lenders will offer the lowest interest rates to those with a good credit rating. If your credit score is low you may opt to improve it first before seeking financing but even with your poor score you will still be able to get financing for a new car but with just slightly higher interest rates.

Obtaining financing for a new auto loan from a bank or credit union can mean additional work and so you may opt to go directly to a dealer. The convenience of a dealer means that you get financing and purchase your vehicle all from one central place. Many dealers will offer deals but it is important that you shop around and compare the prices of different dealers so that you get a good deal. However you should be aware that most dealers get financing from banks or credit unions and so their rates will be slightly higher than those of the lending institution.

If you want to save a little on your new auto loan you should think about getting financing directly from a bank or credit union or another lending institution. A dealer is sort of like a middleman and so by cutting him out you save up a little. You will find that banks, credit unions and other lending institutions offer some of the best interest rates as compared to dealers. However you do need to shop around and compare interest rates, terms and conditions of each lender as this will enable you get the best deal.

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