The number of people in the United states finding it very hard to keep up with their car loan payments monthly is rapidly increasing, due to bad unrealistic car loan deals that ends up becoming a big burden over time.
That is why It is very important you shop around and make sure you are getting the absolute best car loan deal possible, and that is if you really feel it’s a must for you to borrow at all, because there are a lot of car loan sharks out there, only interested in taking advantage of your desperation, especially if you have bad credit and the banks have turned you down.
Here are four great tips on how you can get a great car loan deal:
- Credit report and rating checks;
Before you apply for a car loan, it is very important that you check your credit report and credit rating across most of the leading credit report agencies, because you don’t know which of the agencies your desired car loan lender is going to use, so It very important to check and be ready to answer any question about your credit report, and your credit rating is important because it might be used by your desired lender to set your interest rates.
- Shop around for best deals: It is tempting to go straight for the well-known lender or the first on you see on a TV advert, but you need to ignore that and do a lot of research both online and by asking friends and family that might have had a car loan and ask about their experiences.
- Go for the shortest loan repayment: It is very tempting to go a for a loan of ten years instead of five years, simply because the repayments will cost you less monthly, however, that is the wrong way of looking at it, because the longer you choose to pay off a loan, the more likely you are to default at some point and get into trouble, also the interest rates over a longer period would be considerably more than paying it all off as soon as possible.
- Monthly payments: Regardless of how good a deal is, if you can’t comfortably afford to pay for it monthly, then it’s a bad deal…It’s that simple, because defaulting would only damage your credit rating and report, also you will have to pay some kind of penalty for missing your payment, which only means you are paying a lot more than you should for the deal you tried so hard to get. So, if you know you can’t pay for it comfortably monthly for the duration of the loan, then kill your temptation and walk away because it’s a bad deal.