New Car Auto Loans: Your options
Congratulations, you’re about to become the proud owner of your own new car. Before you leap ahead with an auto loan, you better prepare to do a little research. New car auto loans before making your final decision. Not sure how to start? Here we cover your best options when searching for a new car auto loan.
First of all, it’s always best to shop around; don’t agree immediately to the rates offered by the car dealership. The dealer agreements typically require a high credit score, automatically denying those with bad credit.
This rejection can damage your score even further, lowering it further by a few points. Instead, know your credit score before even entering the salesman’s office; for example, if your score is less than 550, don’t apply for a loan until you manage to fix your credit rating. Not only can this help you avoid rejection, but by knowing your credit score you’ll be aware of any reasons why you might not qualify for that 0% APR, preventing any unwanted surprises later when it’s time to pay up.
You can order a credit report through one of these three companies; your best bet is to order a copy from each in order to find and fix any potential loan-killing mistakes.
· Experian will send you a copy of your credit report for $9.50; visit them at www.experian.com
· Visit Equifax at www.equifax.com to order a copy for $9
· TransUnion will provide your score for $5.95; they’re online at www.transunion.com
With credit score in hand, you are ready to begin looking for new car auto loans that will work with your financial history. Begin your search by turning to the Internet, where a number of loan companies offer instant rate comparisons.
Some online sites to visit for rate assessment:
· Capital One offers instant online estimates at www.capitaloneautofinance.com. Choose the ‘auto loan’ option, then ‘new dealer’ and your zip code. Request a loan amount, set the monthly term and voila! Your estimate will be emailed to you within 15 minutes.
· E-Loan is another popular loan company; visit www.eloan.com to use their online rate assessor. E-Loan also offers online calculators so you can estimate the amount of your loan as well as your loan payments.
If your credit score allows you to consider the auto loan presented by the car’s dealership, inquire about any rebates that they may be offering. If so, it can be a good option to take their loan and then go ahead and refinance it for a lower rate.
For example, Capital One and E-Loan offer refinancing APRs as low as 5.95% (for a 30 to 36 month term) on new car auto loans.