When it comes to getting a car loan, one of the most important things on your mind is probably how to get the very best price. There are actually a number of different things you can do to ensure that you get the best deal possible.
First of all, it’s important to realize that car loans come in many different forms and with an array of different terms and conditions – which often leads new borrowers into making the mistake of assuming that each loan is basically the same. In reality
Shop around and compare rates and terms
Lenders are competing more aggressively for your business, so you may be able to get a better deal than ever before. It’s important to do your research and compare all of the loan options that are available. You can easily do so online – check out Driva to compare your eligible loan options from more than 30 lenders.
You’ll know exactly how much you’re approved for before you start shopping for your car. This will help ensure that you don’t overpay for the car just to fit within your budget.
Your credit score is the most important factor in how much you will pay for your loan. Check your credit score – it’s reported to the three main companies every month, so there’s no reason why you shouldn’t know what it is. If you do find that things aren’t looking so good, then take steps to improve them before applying
Always check your credit history
You will generally get a better deal if you have a clean credit history and score, as well as good income prospects. Remember, the lowest rates may require the best possible credit score, so make sure to check yours before you apply for any loan. You can improve your credit score by making sure that you meet all your existing loan obligations in full and on time.
It’s always tempting to find the cheapest car available, and then try to get a loan for as close to the full price of the vehicle as possible. However, this is usually not a good idea because you’ll end up paying interest on all of that extra money – which can add hundreds or even thousands of dollars to your total repayment.
Get a secured loan
If you’re looking to get the lowest possible rate, it’s a good idea to get a secured loan, as these are normally accompanied by lower interest rates than unsecured loans are. In order to be eligible for a secured loan, you car will normally need to be from 2013 or newer.