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How To Shop For A Car Loan Online

Car Loan Online

Car Loan Online

A car is one of the most expensive things most people buy it is vital to do it right. Buying a car used to be a much simpler process, as people bought cars outright; however, there are now many options for buying cars, including buying on finance, or taking out a car loan.

If you type the words ‘car loan’ into an online search engine you will be greeted with hundreds of results and links to numerous pages all claiming to offer the best deals; this can make it very confusing to choose a loan, especially if you do not have much experience in buying cars or taking out loans. Here are some tips for shopping for car loans online:

Do some research

It is important that you know what you are after and what taking out a loan entails; read up about car loans and call on a financial adviser to check that taking out a loan is the best option for you. Financial advisers have expertise in offering advice and information about financial products and they can provide recommendations based on your individual circumstances; it is beneficial to get some ideas of what type of car you are looking at and how much you have to spend before seeing an adviser so that they can tailor their advice to you.

Figure out your budget

Before you even start eye-balling cars work out your budget and what you want to dish out on a car. Take a thorough look at your bank statements and calculate the level of outgoings you can afford to spare each month according to your outgoings and income. Try not to be swayed into going for a more expensive car just because you are loaning money, rather than paying for something up-front. Many Internet sites now have budget calculators, which enable you to learn how much you pay per month based on your total budget, the borrowing term and the deposit you put down

Compare deals

The online market with companies like Car Loan 4U has made it very easy to compare loan deals; you can use comparison sites to compare providers and see what you will attain for your money. Make sure you maximise the site by putting in specific search criteria so that you get relevant results; it is also worth contacting individual providers to ask about incentives and check the finer details of the loan agreements.

When looking for a loan it is important to focus on the important details: how much you are borrowing, the repayment term and the interest rate. These three figures will tell how you how long you will be paying back the loan and how much your monthly repayment will be.

If you have poor credit rating it is worthwhile to perk up your credit score before trying to get for a loan; if your credit score is bad you may be rejected or the interest rates you are offered may be high. Improving your credit score will increase the chance of your loan request being accepted and the deal you are offered will be better. Avoid going to loan companies that offer loans for people with bad credit, as the interest rates are regularly very high and you will end up paying back a lot more than you borrow. Ensure that you use reputable, approved loan dealers and never feel pressured to accept a deal.

How To Shop For A Car Loan Online

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Save Money With a Pre-Approved Car Loan

Pre-Approved Car Loan

Pre-Approved Car Loan

When the time comes to buy a car you will probably need a car loan. Banks, credit unions, the car dealer themselves have sources for car loans, but to get the edge in the negotiation process you need to get pre-approved first. A pre-approval is generally good for 30 days. If the interest rates go down within those 30 days you will get the lower rate.

Does a Pre-Approved Car Loan Cost Anything?

We have heard of no one charging for a pre-approved loan. Technology has made it extremely easy to gather information these days, so in under 10 minutes most lending institutions can run your application and give you an answer. If there were to be any adjustments for fees or handling it would be in the interest rates. Most car loans collect the bulk of interest in the first two years of the loan. Banks know that people usually won’t pay-off their loan for at least three years, and by that time the bank has made a good portion of their profit.

Pre-approval is based on your credit score and income. If you have an excellent credit score (720 and above) you are in a great position to negotiate rates. Don’t accept the first proposal the lender gives you, they want your business and a half a point here and there won’t kill them.

Saving Money With a Pre-Approved car Loan

Everything is negotiable, this is especially true when it comes to buying a car. Dealers are experts at juggling numbers. When you come in with your own loan you have taken away some of their juggle power. This also means you know exactly what you can afford and how much the payments will be. There is another aspect to this, and it is your trade-in or down payment. Here’s what you will bring to the table – a pre-approved auto loan, your cash down payment or trade-in (value known), and the wholesale value of the car you want to buy. When you come armed with all of these facts you have disarmed most of the weapons a salesman had – you’re in the drivers seat.

So, how will you save money? By having each item separated you can clearly negotiate each aspect of the process. Many times dealers will try to include extended warranties in a car loan, and then they gloss it over with all the numbers. If you want an extended warranty, then negotiate the price separately and see if you can afford it paying cash.

The real savings comes in the price of the car. I’m sure you’ve heard: “what kind of monthly payment can you afford?” This question opens the door for a dealer not to give you the best price for the car, but get you a car loan that could last for six or seven years…this isn’t what you want. You want an affordable loan for four or five years, and you want the very best price you can get for the car you want to buy.

By getting your car loan pre-approved you will get the loan you want, and then you can negotiate the car price without all the confusion. This puts more control in your corner – this will save you money.

Author’s Bio: Myke Thomas is a freelance writer, professional blogger, and social media enthusiast. Her blog Carloans.net focuses on loan bloggers, car bloggers and finance bloggers. You can follow him on Google+ and Twitter.

Save Money With a Pre-Approved Car Loan

Posted in LoansComments Off on Save Money With a Pre-Approved Car Loan

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