Even if you can find a number of financing plans from car dealers themselves, and would actually encourage you to take advantage of them, there are other options you can take and get a lower rate on your loan though it is from an outside source. You should know that lending companies are competing for customers like you, and you should be smart enough to take advantage of this. If you have a dire need to buy yourself a car in no time and the most practical payment you can think of is availing an auto loan, here are the best practices to consider so you know how to saving money ideas from your auto loan.
Down Payment
As much as you can try giving more money for your car upfront, this way you will have better chances of getting lower monthly dues in the amount that you will still owe. It would be much better if you would just trade-in your old car that is if you have one. You can have your old car plus the greatest amount of money you can afford as a down payment for your car. By doing so, you are bringing down to the lowest possible amount the total interest you need to pay.
Your Own Credit Report
Everyone is striving hard to have a good credit report, and this is one of those instances that you can put them into good use. A good credit report is your best ally when you need to negotiate for rates for whatever kind of loan you wish to apply for. The lower credit score you have under your name, the lesser chances you have for the loan that you are applying for to be declined. Lenders would regard you as a credit risk due to the low credit score you have. On the other hand, the higher credit score you have the better chances you have to bargain for your loan.
Rates Analysis via the Loan Brokerage
At this point, you need to do your own homework and that is to make a comparative analysis of the offered interest rates across a wide array of lenders. Don’t let yourself be daunted by this seemingly gargantuan task; it is actually way easier than you ever thought it would be. You may skip searching for banks and lending companies by yourself, instead you may want to go to a Web brokerage company such as RateGenius. They are fast and very effective and know the ins and the outs of the trade, they can provide you with a number of options that you simply won’t find just on your own. What they do is that they match their borrowers against a number of available lending options. This lending company says that most of their clients were able to save at least 5% on interest rates and were also able to mitigate their monthly payment due above $80.
Extra Payments and Refinance
Make an advance payment for your auto loan. By making advance payments more than what you should each month, you shorten the life span of your loan together with the overall interest.
There is nothing wrong and there is nothing to worry about if you want to refinance your car loan. Car loans naturally would take some years for you to completely pay them off and in this span of time a lot of things may happen. If things go in your favor and your credit rate goes up and improve, while the rates would fall, refinancing your auto loan is one effective way on how to save money on your auto loan. It is not at all difficult to see that the amount of effort you put in was all worth it.