Financing your new vehicle through the dealership is convenient. After all, the business manager, who will arrange the financing, and has an office conveniently located on premises. However, finance, insurance and add-ons, all sold by the business manager, are frequently the most profitable section of a dealership. Although car financing at the dealership is convenient, it can cost you a great deal of money.
The business manager sends your credit information to lenders they deal with, and takes the lowest interest rate offered, then adds a mark up to that rate. The mark up is the dealership’s profit, and there is no law stating that the dealer must disclose the mark up. At the dealership, just as you had to negotiate the vehicle, you must also negotiate the car financing.
Prior to beginning your car shopping excursion, you ought to shop for your car financing. Begin by calculating how much of a monthly car payment you can afford. Once you have figured this out, you will you need know the purchase price of an automobile you can afford and the interest rate you will be charged. MyAutoloan.com offers many tools to assist in the process.
When a lender offers an interest rate, many factors are taken into consideration. The biggest influence is your credit rating. Your credit history may or may not give an accurate picture of your money habits. Before applying for a loan, it is a good idea to check your credit rating, you might want to utilize the credit reporting tool found on myAutoloan.com. If there are inaccuracies in the credit report, you can clear them up before making a loan application.
There are other factors that determine an interest rate. Generally, the shorter the loan term the lower the interest rate. However, shorter terms mean larger monthly payments. Used cars have higher rates of interest than newer ones. Geographic location plays a factor as well. Taking all of this into consideration, one quick and easy application with myAutoloan.com provides as many as four lender offers, sometimes within seconds.
It is not a good idea to wait until you are at the dealership and talking to the salesperson to figure out what you can afford. They could make you an offer you feel you cannot refuse, and yet if you looked at the actual loan terms it just might be that you ought to refuse the offer. It is important to receive loan approval first.
Although both banks and credit unions are good places to shop for a loan, and will be clear about what they think you can reasonably afford, their hours of operation are not always convenient. Even if you can calculate bank and credit union interest rates online, in order to receive more than one quote, you need to visit more than one website. MyAutoloan.com is a one stop service, which offers quotes from more than one lender.
In general online financial institutions offer competitive car financing and provide quick and easy credit applications and approval. However, they are not always a personal service and a few are less than reputable. MyAutoloan.com lenders have consultants available to answer customer questions either by way of a 1-800 number or email. Additionally, myAutoloan.com is an A+ member of the Better Business Bureau with a seven year history and 1.5 million customers and lenders.