How to Get Your Best Car Loan

This post is part of a sponsored series. All opinions are my own. 

When you’re car shopping, it can be quite the process. And for those who are new to purchasing, it can be a lot to take in. Luckily, you have the information you need in the palm of your hands these days and there are plenty of articles out there that can lead you through buying a new car. When it gets to the final stages of purchasing your new vehicle (if you choose to finance your car, that is) you’ll be looking at how you can find the best deal on your car loan. With some help from Mr. Ed Auto Financing, here are some tips to help you through the process.

First, know your credit score. There are some great ways to obtain a free credit score right now and by knowing where you stand on that spectrum, you can know what to expect when you walk in the doors of a dealership. Those with great credit will be able to typically obtain lower interest rates and get a better deal on your car loan. Many times if you have a great credit score, you’ll quality for special financing deals offered through the dealership. If you don’t have amazing credit, that’s just fine too! Just don’t be fooled if you’re told you can only get one interest rate, it’s possible to check different banks and see if you can get a better rate somewhere else.

Next, it’s not a bad idea to look into your financing options before you go in to buy your vehicle. You can compare rates on Bankrate or visit your local credit union to inquire about your options. This is a great way to know where you’ll be at for a payment when the time comes, and you’ll be more informed to make your best decision.

Making a large down payment on your vehicle can also help cut down the expenses on your vehicle. You’ll be minimizing the total amount you’re financing, and thus paying less in interest. Many places recommend putting 15-20% down on your vehicle, at a minimum. You can also do this by trading in a vehicle as well, it doesn’t need to be just straight cash.

Another way to cut down costs on your car loan is to opt for a shorter loan term. Not only will you end up paying less interest, but you’ll so find yourself gaining equity sooner than a longer term loan. It makes sense doesn’t it? Of course, only go as short as you are comfortable with in terms of your monthly payment and what you can afford.

As you can see, there are lots of ways to be smart when taking out a car loan, and by doing your homework and research you can ultimately save yourself money in the long run!