5 Car Loan Tips before leaving for the Dealership Lot
Many people demonize auto dealers. They consider them frauds and avoid dealership financing. But, you must understand that dealers are like us. They are trying to earn their living. You don’t have to fear them. You can emerge successful in dealing with dealers.
Preparation for Winning the Deal
You can be a spontaneous person but that doesn’t mean you shouldn’t prepare for dealership financing. If you fail to prepare, you increase your chances of getting a raw deal. Here are five things which you must do before going to the dealership lot:
1. Prepare a Budget
You must know your spending limit. It will aid you in eliminating expensive cars. Also, it will help you to choose the right dealership financing program.
2. Check your Score
A credit score doesn’t remain constant. It changes over the period of time. It is possible that you may no longer be having a bad credit rating. Remember that if you fail to check your credit score, the dealer may take advantage of your ignorance. He may charge higher rates under the pretext of your terrible credit history.
3. Know the Kind of Car you want to buy
It is very important to have a basic idea about buying a car model. Before leaving your home, find answers to these questions. It will help in avoiding cars that don’t suit your lifestyle.
- Are you looking for a station wagon or a SUV?
- Which car will be appropriate for your geographical area?
- Who will be using your car?
4. Down Payment
Most dealers require down payment from a car buyer. They want to check your financial condition and ability to make regular payments. So, it is wise to start saving for down payment amount well in advance. It doesn’t make sense to opt for high rate personal loans for putting money down.
5. Co-Signer
Co-signer is a requirement if you have really bad credit score and a bankruptcy in recent past. You can ask someone with a good credit score to become your co-signer. A co-signer reduces the loan rates. So, it is advisable to bring a co-signer even when you have an average credit score.
So, these are the important things that you should consider before going to a dealer. Do keep in mind that this preparation guide makes you ready for dealership financing. Make sure that you take advantage of it.