Browse > Home / Auto Loans / Car Loans - Watch For Hidden Costs

Car Loans - Watch For Hidden Costs

July 1, 2009

If you have gotten some information about lending and lenders before taking an auto loan from a lender, you are more likely to get a better deal. Spend some time to get information on what lenders look at when going through a loan application.

Car loan lenders take the information in your credit card report and your FICO very seriously when considering both whether to grant your loan request and what interest rate to charge you. If you are aware of this and know what your rating is, you would probably know where to negotiate from.

You need to personally go over your credit report and really understand it prior to applying for that loan. You can get this report from these agencies:-

Equifax: PO Box 740241, Atlanta, GA 30374; equifax.com

Experian: PO Box 2002, Allen TX 75013, experian.com

TransUnion: PO Box 2000, Chester, PA 19022; transunion.com

When you seek great deals, you might be taken in by some seemingly 0% interest loans. At this point, a loan calculator might come in handy. You want to look at the long run. What am I paying eventually? Sometimes you could get a 0% interest rate financing that translates to a higher monthly payment than say a 4% interest rate financing. Don’t take anything at face value. Look into it properly for more information and compare with other options before making a final decision.

Another good point is to have your financing set before you go for the purchase. This has two effects.

1. You make your purchase as a cash buyer and can therefore get better deals on the car price.

2. Since you are a cash buyer, you can easily move around dealerships haggling prices until you find what you want.

Maybe I should add this third one. It also helps you stay in a budget as you would not be buying based on any car you see and the price tag on it since your financing is already fixed giving you an idea of how much you would spend on the purchase.

Never rush into getting a car loan. Take your time shop, compare and bargain before settling for one.

Online lenders abound who are ready to give you a loan in the next 24 hours. If you are in a hurry, then spend some hours online comparing quotes. When you have compare enough to be able to make a decision, apply and you could get your loan the next day depending on the lender.

Remember to use your loan calculator and watch out for hidden costs.

by Chimerenka Odimba

Written by paydayla · Filed Under Auto Loans 

Comments

Got something to say?