In the past years it would have been a problem to get car loan more so if you had a bad credit score. This though is slowly changing and that is why you should not be afraid of your credit score anymore. In fact, report indicates that most credit scores needed by car dealers are coming down constantly. This is due to improved economy thus erasing slowly the effects of the economic recession. In the past years, it would have been almost impossible to get a car loan if you had poor credit score as most of the car dealers didn't have money to lend.
Over the past months though, the following have been experienced:
- More buyers with lower credit score have been approved
- Buyers are offered more loans
- Monthly repayment have been reduced by most car lenders
- More loans are being made by lenders
- Buyers are being offered bigger loans
The above changes have been necessitated by many buyers paying their loans in time and reduced loses by car dealers thus increasing confidence in the market. In turn this has led to reduced loan rates and thus more lending by buyers.
How then do you get the best deal at any score?
Although there are good deals outside there, getting a good car loan deal at any score is not automatic. You still need to do your part so as to ensure that you land at the best. The following therefore are some of the helpful tips you can employ to get the best car loan deal.
1. Know your credit score
It is always advisable to know your credit score prior to applying for the car loan. Therefore, ensure that you not only check your credit once a year, but constantly more so when you need a car loan. You can buy a credit score from bureaus, and this can help you determine where you are likely to get a car loan.
2. Check the average interests offered for your score
It is always important to know what the market is offering you with your current credit score. When you do that, you are a good position to negotiate for the best deal. For instance, you will be able to know what to bargain for and what not to. This is because you have prior information on the average interest rates offered to your credit score.
3. Don't underrate your credit score
It is wrong to think that your score is too low so you will automatically get a bad deal. If you do that, you will be accepting defeat early thus leading to acceptance of any deal put on the table. Although the lower your credit score the more you are likely to pay, you should not throw in the towel easily. There could be a lender somewhere who can give you the best deal.
4. If you have lower credit score then save
If your credit score is lower, it is important to start saving for the car. This will help you in getting a good car loan deal. This is basically when you offer a big down payment, the lender is likely to flex his muscles. In anyway, no business person would like to see a good deal slip over; so this can be the game changer during negotiation.
5. Shop for a loan before rushing to car dealers
Looking at different types of cars can be tempting. It is important therefore to shop for the loan before approaching the car dealers for the loan. When you do that, you get important information that can help you determine whether the deal is good or bad. In addition, you should never sign anything on the spot, instead ask the management to give you a written report. Then go home and study it slowly, but if the management refuses to give you that, then you should run away because that is a bad sign.
6. Consider quality used car
Finally, you may consider buying a reliable used quality car. Remember though that you need to ensure that the car you are buying can give you reliable services. Therefore ensure that you establish the vehicle history of the car, inspect it and have a mechanic look at it. This can help you eliminate stress that could follow afterwards. Used loans are easy to get, but they can be expensive more so their payment rates. So ensure you check the car thoroughly.
Getting a good car loan deal at any score is more than possible today. All you need to do is check out your credit score and source for a lender who is willing to accommodate your situation. Therefore do not be afraid; just go out there and shop for your car today.