5 Tips To Save Big On Your Next Car Loan

If you think about it, the most grueling part ofdealerships are now online as well? The advantage
the car-buying process, after agreeing on a price,of working with a local car dealership can
is acquiring the right kind of loan for your new oroutweigh working with the manufacturer or a
used car. Most consumers enter the carnational website when you want the best in
dealership completely unprepared for the loanquality customer service, a relationship for the
application process, and that lack of knowledgelifetime of your car and the best deal on your
and planning is costing them millions of dollarsauto loan.
every year.The advantages of getting a loan through a local
If you want to create a win-win situation for youdealership is similar to the reason every town in
and the car dealership you purchase your carAmerica has a locally-owned restaurant that has
from, there are five steps to take before you sitregulars: local businesses have a sincere
down at the negotiation table: get your creditinvestment in the community. That interest often
report, surf before buying, go local, speak theleads to better customer service, a more
language and be prepared to negotiate.customized approach to selling, and the ability to
1.) Get Your Credit Report You can't pick up aget you a better loan than you will receive from a
personal finance article, magazine or book thatlender who doesn't know - or care - who you are.
does not refer to the importance of knowingLastly, the local dealership may have more than
what is on your credit report. Despite the factone location, increasing your options for finding the
that modern media has been beating us over thecar you need but offering the same uniform auto
head with this advice for the past couple offinancing options. For example, a car dealer in
decades, most people do not know their creditKansas, is also a Hutchinson car dealer and a
score or check their credit report on a regularNewton car dealer. So, if a customer goes to one
basis. You can get a copy of your report bydealership and does not find what they need,
directly contacting the three credit bureaus:they can visit another location and expect the
Equifax TransUnion and Experian (formerly TRW).same quality customer service.
Not knowing your credit score and the details of4.) Speak the Language There's nothing more
your credit report before applying for a car loan isfrustrating than going through the entire
a monumental mistake. You want to have anycar-buying process, thinking you have a good deal,
blemishes on your report resolved before youand learning down the road that you were taken
apply for a car loan, because the results of youradvantage of - simply because you had no idea
lender's credit inquiry directly impact your interestwhat your sales rep was talking about.
rate.From dealer holdback to Rule of 78s , make sure
Your credit report includes: basic information aboutyou have an understanding of some of the basic
you - name, address, social security number, etc.;industry terms that could be thrown at you during
your late payments, any outstanding debts youyour transaction. With this knowledge, you won't
have, the amount of credit available to you; anymisunderstand the details or find yourself being
public records on you such as judgments andsigning a contract or paperwork that you don't
bankruptcies; and inquiries into your credit fromunderstand.
potential employers or lenders.5.) Be Prepared to Negotiate If you've followed
And just because you have caught up latethe four previous steps in this article, you will be
payments, cleared outstanding debts or clearedarmed with the necessary tools to negotiate the
up any judgments does not mean thesebest rate possible for your car loan. There's
blemishes are automatically removed from yournothing wrong with shopping around and checking
credit report. Sometimes, you need to follow upwith other lenders to see what kind of rate they
with the creditors to make sure they report yourcan offer you, but you must remember that
reconciliation of debt to all three credit bureaus.numerous inquiries into your credit report may go
In addition, identity theft and/or fraud can result inagainst you.
false, unfavorable records on your credit report.And, when you go through the dealer for your
In January 2006, the Federal Trade Commissionauto loan, the sales rep wants a long-term
reported that more than 686,000 people reportedrelationship with you. This motivates them to
identity theft and fraud complaints in 2005. Stolenwork harder to get the best rate possible for
identity and fraud can result in major credit reportyou. In contrast, an online or off-site lender's
issues.interests begin and end with the loan - but the car
2.) Surf Before Buying You'll be far less tempteddealer wants you to: come back and have your
to impulse buy, driving away from the carcar serviced, return when you want to purchase
dealership with a car you can't afford if you haveyour next car, and tell your friends about them,
established boundaries in your mind before youfurther strengthening the dealership's reputation in
begin. You can save big money on your car loan ifthe community and increasing business.
you have a budget and type of car in mindBefore you sit down to get your next auto loan,
before you go shopping. One easy way totake the time to do a little homework so that
accomplish this is to go online and check outyou can feel confident about securing the best
different car dealership websites.deal for your auto loan. Investing a little time and
You can compare and contrast vehicle makes,effort before making the deal can go a long way
models, styles, features and pricing.in creating a win-win situation for you and the car
3.) Go Local There are many national autodealership.
websites, but did you know that many local car