How To Save On Auto Loans

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Lots of people are intimidated by the thought of buying a car and getting it financed. They find it confusing and a lot of times they are afraid because of the horror stories that they hear around them. Most of those stories are true. Lots of times dealerships can take advantage of you when it comes to financing. A lot of times they use it as an opportunity to make more money. However, you can avoid going that route by doing your homework. Make sure that you have gathered enough information to educate yourself before you go out there and agree on any financing terms.

Give a serious thought on your financing options before you shop. Consider your monthly expenditures and other financial commitments to determine how much you’re able to afford. Keep in mind that you can be approved for a loan before even visiting a dealership. Securing your financing before you visit the dealership empowers you like a cash buyer. It will allow you to hop around dealerships to look for the best deals.

Here are a few tips to help you save money on auto loans. It will help you stay on track to make sure that you will land on a financing that will not go over your allotted budget.

 

Be aware of your credit score

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 Lenders use credit scores to help decide how risky it will be to lend you money or provide you a service. Creditors see more risk from low credit applicants than those with better scores. The result is a higher interest rate or they can turn down your application.

Make sure that you are on top of things. Monitor your credit profile. It consists of your credit report and credit score. Get it free at AnnualCreditReport.com .

 

Decide where you want to acquire financing

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Be careful in choosing where you send your loan application. Find a licensed online lender with a BBB rating of “A”. Many online auto loan web sites are fronts for car dealer lead-generation while other sites are individual lender sites. Go to their “about us” section to find out how they operate.

Auto loan lead generation websites

On lead generation web sites, you apply for a loan and your application information is immediately routed to one or more car dealerships. They carefully check every application to make sure that they are genuine and valid before they send it to dealers. You get dealer financing with these sites.

 Lender websites

On lender websites, you can apply for a loan and may or may not get approved.  Direct auto financing can get you a lower annual percentage rate but it can be very time consuming filling out multiple applications. They  also have  high standards in filtering loan applications so it may be difficult for those who are struggling with their credit scores to be approved.

Online Lending Marketplace

Online lending marketplaces like VinAudit partner myAutoloan.com offer an online alternative to traditional lending. It offers quick and easy application process from the comfort of your own home. They are popular for their high approval rate and loans are processed and funded quickly. You can get multiple offers to choose from so you can maximize the amount of money that you can save.

 

 Be ready for your trip to the dealership

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Remember to research about the dealership that you will visit. Check out their feedback online and make sure that they are licensed. Keep in mind that there are bad dealers out there who intend to make a profit on your financing by marking up interest rates and in some cases, inflating prices of service contracts and other insurance products. If you think the dealer can give you a better deal, then finance through the dealer. Otherwise use the online auto loan that you have been approved for.

Don’t be swayed when a dealer offers to beat your online deal by getting you lower payments while increasing term, sales price or increasing the rate (APR). It may appear to be a good deal but in the end you will be paying a lot more. Focus on the full amount and do not be diverted by low monthly payments.

 

Negotiate like a cash buyer

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With financing in hand, you are in a very strong position to get the best pricing on your new or used car. Have confidence when negotiating, you already have the funding so the price easily be at your command. Work with reputable dealerships and your overall experience will be excellent.

Having an approved financing before hopping over to a dealership is the smart way to go. You will have control to choose the best deal that you can get so you can save money.

Get prepared today: Check your credit score at AnnualCreditReport.com and negotiate your auto loan at myAutoloan.com.

How To Test Drive A Used Car

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Taking the car for a test drive before committing to buy it, is very important. This is your opportunity to experience everything that the vehicle has to offer. It will help you determine how the car performs under different road conditions. You take it out for a test drive to make sure everything’s in good working order and to find all possible faults so that you can negotiate for a lower price.

Here are a few things that will help you make the most of your test drive.

 

Before Driving

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 When you get into the car take a few minutes to get a good feel of the vehicle. Take time to do a brief evalutaion of the interior’s  cosmetics  and familiarize yourself to the placement of the buttons, levers and pedals.

  • Check the seats and the mirrors make sure that they can be adjusted properly.
  • Find your sweetspot adjust the steering distance, the driver’s seat and the mirrors according to your preference.
  • Remember to have the seller walk you through the vehicle’s safety features. Ask for the number of airbags, check active-safety electronics and all adjustable seatbelts.
  • Start the car. Listen to it while it’s idle then step on the gas a bit. Observe if you hear any clicking or coughing. Feel the pedals with you foot make sure that they’re within reach and turn on the air condition to create a comfortable environment.

 

While Driving

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 Proper test drive should involve driving more than just around the block. You should go 4-5 miles on different roads and speeds to get a good idea of the car’s true range. Listen to the engine’s performance as you head on slowly and as you increase in speed.

  • Make sure that you get a good feel of how the transmission is shifting. Make sure there are no slippage. Listen for whinning or clonking sound when shifting.
    Check out how the break reacts make sure that it is spot on and steady.
  • Let go of the steering wheel to make sure that it tracks straight. Make sure you check if you are able to steer all the way to one direction. If it does not, that indicates alignment issues. If the steering wheel is shaky it means bent or off balanced rims.
  • Pay close attention to the gear and the clutch they should engage smoothly and easily it should not be too stiff and heavy.
  • Check out the cruise control. Make sure it is operating properly. It should disengaged when you hit the breaks and clutch.
  • See how the car responds after hitting bumps. Listen to rattling or squeeking. If there’s knocking when going over bumps or turning sharply that means that the car’s got a worn ball joint.

I strongly suggest that you take notes. Write down the things that you have discovered so you can evaluate the over all experience.

 

After Driving

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After the test drive do not turn the engine off right away. Take a look around to make sure that everything is still in good condition.

  • Open up the hood and check the engine. Check for smoke, odor and any inappropriate gushing of fluids.
  • Bend down to check if there are any leaks. Check the floor for spots. Make sure that there are no fluid dripping.
  • Check the tire’s condition by pushing and pulling it in both direction. Make sure that it is still firm and does not wiggle.

If you are not confident enough to decide on the spot then take it to a professional mechanic for a final verdict. In most cases, the seller will agree to that except when they are hiding something.

Buying a used car is a big investment. You should be careful and not be in a hurry. You need the car long enough to be able to make sure that it is safe to drive and that it suits your needs.