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Tips for Saving Money on Your Car Loan

If you are considering buying a car, check out these tips to get the best financing possible and save money overall!

Know your credit score:

  • Your credit score is an important factor a lender will consider in determining what interest rate to offer you
  • Check your credit reports for free by visiting
  • A higher credit score usually leads to a lower interest rate on a loan

Shoot for a shorter loan term:

  • A shorter term loan results in lower interest rates
  • You can save more by paying less over time
  • Your vehicle will be played off sooner

Wait for the right time to buy:

  • Waiting until the end of the year, later in the moth, and earlier in the week can save you money
  • You are more likely to be able to negotiate the price since salespeople are trying to meet their quota

Get preapproved for a loan before going to the dealership:

  • Dealers’ rates can be markedly worse than those available elsewhere. Among financial institutions, credit unions typically offer better terms than banks
  • Having a preapproval letter gives you more bargaining power to negotiate a better price

Buying a new car is a major financial commitment. Taking time to figure out how much you can afford and finding the smartest financing are well worth the effort and can save you hundreds on your loan.