How to get the best auto loan deal

By Credit Federal

How to get the best auto loan deal: Make a list of every car dealership selling your brand of car. Call the dealerships, and tell them exactly what you are looking for. Let them know you are calling every dealership in the area to get their best price. Most will undoubtedly want you to come to their showroom before quoting a price. Do not do this. Tell them you don't want to waste their time or yours and you are only going to go to the showroom offering the best price on the phone.

Be aware that dealers may attempt to trick or persuade you. They may mentions that other dealers will tell you one thing over the phone, but when you arrive in their showroom they will have hidden fees attached to the quoted sale price. Calmly explain that if any dealer pulls that on you, you will walk right out of their showroom.

If a dealer refuses to quote a price over the telephone, or if you are getting tired of arguing with them, politely tell them you understand if they don't want to give you a quote over the phone, but you will only buy your car from someone willing to serve you in the way in which you need to be served. If they can't do that, you will simply call someone who can. This will almost certainly convince them that they had better work with you over the phone.

Do be intimidated. If a sales person is too aggressive, either ask to speak to their sales manager or hang up.

After you have gone down your list, call each one back and tell them the current lowest quote you've gotten from another dealer, and ask them if they can beat it.

Call back every dealer who beat the lowest price in the first round, and ask if they can now beat the newest, lowest price.

Once you are satisfied that you have the lowest price in the area, go to that dealership and ask for the person who quoted you the price. Remind the person of the quote, and make sure it is honored. If not, go to the dealership with the next lowest quote.

The process above may be time consuming, but don't let that interfere with getting the lowest auto quote.

When seeking an auto loan, be aware that dealer financing may not be the best deal. Get auto lender quotes directly and compare the financing they offer with a dealer's offer. Offers vary, so shop around for the best deal. Be sure to compare the annual percentage rate (APR) and the term length of the loan. When negotiating an auto loan, be wary of focusing only on the monthly payment. The total amount you will pay depends on the price of the car you negotiate, the APR, and the loan's repayment term.

Dealers may offer low auto loan rates for specific cars or models, but may not be willing to negotiate on the prices. To qualify for the special rates, you may be required to make a large down payment, and these offers may not apply to bad credit auto loan applicants. With these conditions, you may find that it?s sometimes more affordable to pay higher financing charges on a car that is lower in price or to buy a car that requires a smaller down payment.

Before you sign an auto loan contract, consider the terms of the financing and evaluate whether it is affordable. Some dealers and lenders may ask if you want to buy credit life or disability insurance to pay off your loan should you die or become disabled. In many cases, you can obtain lower rate insurance if you deal directly with an agent instead of purchasing from the dealer or lender because you won't have to pay their commission fee.

You may discover that having a check already in hand can get you a better deal. So apply online now and get free quote for a good or bad credit auto loan.