How to Get a Low Interest Rate When Buying a Car

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How to Get a Low Interest Rate When Buying a Car

The interest rate on auto loans, (and in fact every other loan, mortgage or credit

card) directly affects the monthly repayment amounts you make to the lender. Low interest rates mean lower monthly payments. There are specific

steps you can take to get a low interest rate when buying a car and we give you 5

of the top steps in this article.

How to Get a Low Interest Rate When Buying a Car

1. First, take care of the basics of good credit rating. Get your credit report, if you have not done so already. Correct

errors on your credit report and do take steps to raise your credit score. A good credit score means a low interest rate when buying a car. So check your FICO

score and it's below 700, work to get to that number or higher. Then apply for a

loan.

How to Get a Low Interest Rate When Buying a Car

2. Whilst you are working to improve your FICO score, save money for a down

payment. If you can pay down at least 10% of the price of the car, you can negotiate lower rates for the auto loan. So what if you cannot make a down payment? You will still be approved for the auto loan

without a down payment. But your ability to negotiate for a low interest rate is not as strong if you do not have a down payment.

How to Get a Low Interest Rate When Buying a Car

3. If you can afford to pay the car loan in a shorter period of time, you may get a lower interest rate. What do I mean? Take this as an example: if the loan was for 5 years, you

can skip this and pay the loan off in 4. Usually when the repayment terms are lower, the interest rates are lower. So

settling the loan in shorter amount of time is good and works in your favor to get a low

interest rate when buying a car.

How to Get a Low Interest Rate When Buying a Car

4. If your credit score is not going to get you the low interest rate you want when buying a car, get a co-signer who has a credit score of 700 or better to co-sign the car loan with you. Usually a co-signer has to be a relative such as sibling, a parent or spouse. Or

they can be a really close friend. They will accompany you to the lender's offices to complete the entire

paperwork concerning the loan. What happens when you get someone to co-sign with you? Their excellent credit rating will help you get a low interest rate when

you purchase the car. But remember that if you default, they will assume responsibility in repaying the

loan.

How to Get a Low Interest Rate When Buying a Car

5. The fifth option is to do comparison shopping. Get at least three auto loan quotes. Compare these

no-obligation quotes and see which lender or dealership gives you the lowest rates. Finally

request a full application forms, fill them out and send the over to the lender. You will get a low

interest when buying a car this way.

It does take a little effort to get all this to work out. But it is definitely worth it when you get that car

you want.

How to Get a Low Interest Rate When Buying a Car

Now visit our website by clicking on the link below for more tips on how to get a low-interest rate when buying a car. Go

now to:

http://www.LendingAndCredit.net