Don’t try to arrange financing at the dealership. It takes time and if your credit is less than perfect you may get a nasty shock. Instead, talk to your bank or credit union ahead of time so you know how much you can borrow and what interest rate you’ll be charged. Having a pre-approved auto loan in place will level the playing field when meeting the finance manager. If they want to earn your finance business, they either need to match your current interest rate, or better yet, beat it.
If you don’t have time to check with your local lending institution. The Internet makes it easy to apply for an auto loan. Applying with online auto finance companies such as myAutoloan, LightStream and Auto Credit Express is quick, easy and best of all, free. MyAutoloan not only allows you to apply for a pre-approved loan online, they also provide you with up to four loan offers so you can compare and choose the best one for you.
That way, if the dealership is offering low interest financing you’ll know if it’s really a good deal. And don’t forget that a piece of paper stating you’re good for a loan of a certain amount shows the salesperson that you’re a serious buyer. Read my chapter for everything you ever wanted to know about how a dealership’s auto finance process works.
It’s also prudent to find out what insurance will cost on the new car. Especially if you have teen drivers in the house you may find it jumps up, (or less likely, comes down). The worst thing in the world is finding out after you bought a car, your monthly premium payment is more than your actual car payment.
You can visit well known insurance companies online to get free, no-obligation rate quotes. The company I recommend is Liberty Mutual. After receiving your quote this company, you can do a comparison to guarantee you’re receiving the best coverage for your money.