5 Tips On How To Secure The Best Car Loan Interest Rate
Everyone wants to get the best interest rates for themselves, and why do some people obtain better interest rates than others? Here are some tips to help you achieve the best car loan interest rates for yourself.
Don’t let the salesperson tell you that the offer he has provided is the best in the market for your circumstances.
Each car loan provider assess their interest rates differently, where some lenders will base their interest rates on the applicant primarily, where other lenders will base their interest rates on the car primarily, so depending on the vehicle you are purchasing and the overall strengths in your application, there may be better out there for you, if you shop around.
There are many reputable car loan brokers that have a range of lenders they have access to. The finance brokers can usually do what may take you weeks, in a few hours and may even get you lower car loan interest rates than what you can obtain yourself, and at times, they may be able to obtain a lower interest rate with the same bank that you bank with, than what you can get yourself.
A car finance broker can also take the guess work out of it for you, by understanding all their lender’s different policies and guidelines to give you the best chance of getting it right the first time and creating only one enquiry for your car loan proposal.
Each time you apply to a lender, they will require to view your credit file, and in order to do so will create an enquiry on your credit file. The more enquiries in a short period of time, the lower your chances are of getting the best deal, and even quite a few lenders may decline the loan due to excessive loan enquiries.
Get it right first time and don’t apply unless you are 100% committed and satisfied with that quote.
The old saying goes “if you don’t ask, you don’t get”, well this can apply to car finance too. Some car loan providers may not offer you the absolute best deal they can achieve upfront and they also would be hesitant to lose a prospect, so if you ask and they can lower their interest rate, they most likely will if they fear you going elsewhere and knowing that there is a better interest rate available, as they themselves can provide it for you.
The lower the borrow amount against the vehicle you’re purchasing, the lower the risk to the lender, which not only may open up some options in regards to which car loan providers will approve your loan, but with some lenders, you may get a discounted car loan interest rate, as you are committing some cash deposit towards the car and not borrowing the whole amount.