A reasonable loan? Does such a thing even exist? Don’t you just walk into the dealership, pick a car, and end up with crazy interest rates and fees? Well, you could, or you could take charge and find the best loan for you.
In today’s modern age the times of dealership loan oppression are long gone. More and more tools are surfacing that allows car buyers to take charge and take advantage of a loan that not only makes sense but is also more affordable. Best of all, you won’t need a college degree to be knowledgeable about where to find them.
Now, you might be saying, “Hey, why don’t I just take the bus, or use a BlaBlaCar?” For some people, that is a fantastic option, but statistics show that 75% of people in the UK own at least one car. The need to own your own vehicle is still a strong one, and with that comes the need for a quality loan as well.
With that being said, here’s how to find the best loan possible.
First Things First
Everyone knows that their credit score is a major factor when applying for a loan, but not everyone knows what their score looks like. In the past, you would have either taken the lender’s word for it or had to pay to view your own score, but with sites like clearscore.com, you’ll be able to see how your credit stacks up for free.
If your score isn’t the best out there, don’t get yourself in a panic. Paying off any existing loans or outstanding bills is a great way to boost your score. Even the slightest increase can open up a wide range of possibilities in finding the ideal loan.
Learn the Lingo
Lender jargon can often be a tad bit confusing, but knowing some critical definitions can make a world of difference for you. For instance, if you were presented the option between a fixed or variable rate which would you choose? Probably the one with the lower rate, right?
While variable rates often offer a lower initial cost, they can change at any time based on an index. Often times that leads to you paying a drastically higher rate as it continues to increase over time. Ultimately, you may end up paying a whole lot more than you bargained for.
Skip the Dealership
Sure, you’ll be buying your car from one, but that doesn’t mean you have to take the loan that they offer. You’d be surprised at how many affordable, better quality loans are available from either a bank, credit union, or other auto loan lender. You are more likely to find a better monthly payment with a lower interest rate anywhere outside of the dealership.
Choosing a separate lender will also allow you to skip the fees associated with the dealer acting as the middleman. Finding a good auto lender will also allow you options for refinancing, as well as a more personal experience in most cases. Plenty of online lenders also offer helpful FAQ’s, and other online tools to help you in the car buying process.
Tools to Succeed
The above are only a few tips to get you started in the right direction. If you really want to be in control of your auto loan you can take advantage of loan calculators, side by side lender comparisons, their pros and cons, and a slew of helpful advice right here. Using the tools available to you will ensure that you never end up stuck with a miserable loan again.