How to Get a Better Car Loan

When you want to take advantage of low car loan interest rates or rebates from struggling car manufacturers, increase your savings by trying to get a better car loan to lower the vehicle's overall cost. Consider these suggestions to get a better car loan from a bank, credit union, lender or car dealership.

Difficulty: Moderate

Instructions

1. Secure a lower interest rate by ensuring your credit rating hovers around the 700 range. Get a better car loan by getting a credit report from Equifax, Experian or TransUnion to check your credit rating to avoid surprises at the dealership. Correct any discrepancies or work to eliminate any debts that are negatively affecting your score.

2. Ask the dealership if it can beat a car loan quote you've received from a credit union or online lender. Have proof of the pre-approval so the dealer will know that you'll be able to secure a number of other car loans if you can't reach a deal on the lot. With the increased competition for car loans, the added pressure can work in your favor.

3. Increase the amount you're willing to put down on the car to help secure a better interest rate. Banks, credit unions and car dealerships traditionally reward a bigger down payment with a better car loan and quicker pre-approval.

4. Avoid accepting zero percent car loans if it means giving up a discount that will save you more money in the long run. Although it sounds like you're getting a better car loan than the alternative, you may have to forfeit a rebate of several thousand dollars to receive zero percent. Before you decide, calculate the difference and you may find that it's better to take the rebate, accept the regular car loan and apply the rebate to your down payment.

Tips & Warnings

• You may want to accept terms for the car loan quote from the dealership despite the fact that you can get a better car loan from another source. Even if the dealer's car loan interest rate is slightly higher, this may be offset if it's offering a hefty rebate that would be more than the different between the two car loans.

[writedesign]

on 3/6/2009 We did this! 5*

[goodselfme]

on 3/5/2009 Great points to secure a better car loan. I will remember them when I shop for my next vehicle.

[Lilfix]

on 3/5/2009 Great tips on getting a better car loan. I've been thinking about doing this, but wasn't sure if this was the right time or not...Thanks for sharing these tips! RRCR5*