Are you in the market for an auto loan, either on a new car or an old one? Are you aware of how auto financing works, but would like to know more of the ins and outs? This handy video is designed to inform you on precisely those details: the tips of the trade, from someone who is experienced in the field.
As the video suggests, preparation is always key when it comes to obtaining an auto loan. Researching the market doesn’t cost anything at all, and you can do it at your own pace and without pressure. Borrowers often rush into commitments, especially on something like an auto loan when they are in need of a vehicle, and end up shackling themselves with difficult loan terms which may result in years of financial struggles.
Besides effectively preparing yourself so as to understand the ups and downs of the market at any given time, here are some key tips that a prospective consumer can glean about auto financing from the above video:
- Regardless of your credit score and borrowing history, you are still entitled to the consumer rate on an auto loan.
- Dealerships have connections with banks and credit unions, so can therefore offer commercial rates which will always be lower than consumer rates.
- Therefore, while you may think your bank has a good rate, always consider the rate offered by your dealership which may be significantly lower.
- However, do not go into your dealership without first filling out an application with your bank. This will mean that you can show the dealer that you are pre-approved at a given rate, so that the dealership will have to beat this rate in order to gain your signature.