Automotive Journal

After the car has been test-driven, the papers have all been signed and the keys are in hand, youare likely more worried about getting your new car home and showing it off than you are about whether or not you got a good deal on your car loan. But as the excitement wears off and the first payment draws closer, you may find yourself asking: how do I know I got a good deal on a car loan?

Thing is, you should definitely start asking this sort of question before you ever even set foot inside a dealership. When you go shopping for a new car well prepared, with all the facts and figures you might need, it can really help cut down your stress levels with such a big purchase! Plus, if you’re prepared in advance, you don’t spend the next five years thinking “did I really get a good deal on this car loan?”

First up, take a look at your car loan history. Have you ever taken out a finance deal on a vehicle before? Did you make all the payments when they were due? Did you pay the loan off early? Or was your vehicle repossessed if you fell behind with payments. Your previous car loan history is one of the most important factors in whether you get the car loan deal you want.

Next thing, put in some time to research the exact details of the car you want. Get the make, model and year of the vehicle you’re interested in purchasing, and check out some other things too. If it’s a brand new car, you should look up to see what the future resale value is likely to be, and make sure that you’re getting a reliable vehicle. When you’re buying a used car, do some research to find out how well that model holds up over time.

Now you’ve done this preliminary work, the next important step is to look into insurance for the vehicle. There’s no point in leaving this until after you’ve picked the car of your dreams – there’s nothing worse than setting your heart on a high performance sports car, and then discovering the insurance is so high you can’t afford it! Also, it’s a fact that almost all dealerships will want to see proof that you have insurance in place before you drive away in your new car.

Ready to head down to the dealership? You’re not quite there yet! Before you make a start on negotiating with car dealers, you should check out what loans are available to you. Plenty people don’t realize that you’re not tied into only taking finance through the dealership – if you can find a better deal on your auto loan from an outside company, there’s nothing stopping you taking it!

Make sure you set aside a few weeks to apply for loans and get notification of approval. Remember, just because youare approved, doesnat mean you have to accept the loan. Compare the loans that youare approved for, and figure out which has the best terms for you. Low interest is a key factor in this case.

Now, head to the dealership, and after youave settled on the car and the purchase price, let the dealer know that youave already got your loan in place, but youare willing to secure a loan through the dealership if they can offer better terms. They may be able to go even lower on interest, since they make more money if you secure a loan through them. Now, when youare driving your new car home, and you wonder, how do I know I got a good deal on a car loan? Youall know you did, because you did your research, and came prepared.

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