Free Article tip for loans

If you think about it
the most grueling part of the car-buying process
after agreeing on a price
is acquiring the right kind of loan for your new or used car. Most consumers enter the car dealership completely unprepared for the loan application process
and that lack of knowledge and planning is costing them millions of dollars every year.

If you want to create a win-win situation for you and the car dealership you purchase your car from
there are five steps to take before you sit down at the negotiation table: get your credit report
surf before buying
go local
speak the language and be prepared to negotiate.

1
Get Your Credit Report
You can’t pick up a personal finance article
magazine or book that does not refer to the importance of knowing what is on your credit report. Despite the fact that modern media has been beating us over the head with this advice for the past couple of decades
most people do not know their credit score or check their credit report on a regular basis. You can get a copy of your report by directly contacting the three credit bureaus: Equifax
TransUnion and Experian (formerly TRW).

Not knowing your credit score and the details of your credit report before applying for a car loan is a monumental mistake. You want to have any blemishes on your report resolved before you apply for a car loan
because the results of your lender’s credit inquiry directly impact your interest rate.

Your credit report includes: basic information about you – name
address
social security number
etc.; your late payments
any outstanding debts you have
the amount of credit available to you; any public records on you such as judgments and bankruptcies; and inquiries into your credit from potential employers or lenders.

And just because you have caught up late payments
cleared outstanding debts or cleared up any judgments does not mean these blemishes are automatically removed from your credit report. Sometimes
you need to follow up with the creditors to make sure they report your reconciliation of debt to all three credit bureaus.

In addition
identity theft and/or fraud can result in false
unfavorable records on your credit report. In January 2006
the Federal Trade Commission reported that more than 686
0
people reported identity theft and fraud complaints in 2005. Stolen identity and fraud can result in major credit report issues.

2
Surf Before Buying
You’ll be far less tempted to impulse buy
driving away from the car dealership with a car you can’t afford if you have established boundaries in your mind before you begin.
You can save big money on your car loan if you have a budget and type of car in mind before you go shopping. One easy way to accomplish this is to go online and check out different car dealership websites.

You can compare and contrast vehicle makes
models
styles
features and pricing.

3
Go Local
There are many national auto websites
but did you know that many local car dealerships are now online as well? The advantage of working with a local car dealership can outweigh working with the manufacturer or a national website when you want the best in quality customer service
a relationship for the lifetime of your car and the best deal on your auto loan.

The advantages of getting a loan through a local dealership is similar to the reason every town in America has a locally-owned restaurant that has regulars: local businesses have a sincere investment in the community. That interest often leads to better customer service
a more customized approach to selling
and the ability to get you a better loan than you will receive from a lender who doesn’t know – or care – who you are.

Lastly
the local dealership may have more than one location
increasing your options for finding the car you need but offering the same uniform auto financing options. For example
Conklin Cars Salina
a car dealer in Kansas
is also a Hutchinson car dealer and a Newton car dealer. So
if a customer goes to one dealership and does not find what they need
they can visit another location and expect the same quality customer service.

4
Speak the Language
There’s nothing more frustrating than going through the entire car-buying process
thinking you have a good deal
and learning down the road that you were taken advantage of – simply because you had no idea what your sales rep was talking about.

From dealer holdback to Rule of 78s
make sure you have an understanding of some of the basic industry terms that could be thrown at you during your transaction. With this knowledge
you won’t misunderstand the details or find yourself being signing a contract or paperwork that you don’t understand.

5
Be Prepared to Negotiate
If you’ve followed the four previous steps in this article
you will be armed with the necessary tools to negotiate the best rate possible for your car loan. There’s nothing wrong with shopping around and checking with other lenders to see what kind of rate they can offer you
but you must remember that numerous inquiries into your credit report may go against you.

And
when you go through the dealer for your auto loan
the sales rep wants a long-term relationship with you. This motivates them to work harder to get the best rate possible for you. In contrast
an online or off-site lender’s interests begin and end with the loan – but the car dealer wants you to: come back and have your car serviced
return when you want to purchase your next car
and tell your friends about them
further strengthening the dealership’s reputation in the community and increasing business.

Before you sit down to get your next auto loan
take the time to do a little homework so that you can feel confident about securing the best deal for your auto loan. Investing a little time and effort before making the deal can go a long way in creating a win-win situation for you and the car dealership.