Consumer Portfolio Services are helping many people purchase a car through auto finance options, but it can be tricky trying to figure out what’s the best way to get the best auto financing deal. Here, we’ll have a look at five of the best ways to make sure you get the best auto finance deal for your needs.
1. Good Credit Score is Key!
It goes without saying that your credit score plays a huge role in securing the best auto loan options, so make sure to check your credit score ahead of time, and address any issues before applying for an auto loan. A good credit score will not only help you get the lowest interest rate on your auto financing, but also give you access to more loan terms, better repayment periods and a higher loan amount.
2. Know Your Budget Right From the Start
It’s essential that you know exactly how much you can afford to spend each month when it comes to taking out an auto loan. So, before you start shopping around for an auto loan, take the time to review your budget to determine what you can realistically pay back each month and use this as the basis for searching for the right auto loan. This should help you narrow down what kind of car you’ll be able to buy with your budget.
3. Shop Around: Compare Auto Loan Options
Once you have an understanding of your budget, take the time to compare different auto loan options from different sources, such as banks, credit unions, online lenders and local dealerships. Comparing different auto loan offers could help you score a lower interest rate than you would by going with the first auto loan offer you come across. Also, don’t be afraid to negotiate the terms of the auto loan or the price of the car to get a better overall deal.
4. Understand All the Charges
If you’ll be buying a used car, make sure to understand the difference between a loan and a lease. Generally, a loan involves a set term during which you’re expected to pay the loan off completely; while a lease requires you to pay a monthly fee over the course of the lease term without any real ownership of the car. Additionally, be sure to read the contract carefully to identify any hidden fees or extra charges you may have to pay before signing the agreement.
5. Take Out an Extended Warranty if Necessary
Most car dealerships offer extended warranties for those who buy their cars via auto financing, so it’s definitely worth considering taking out one of these policies if necessary. An extended warranty can provide peace of mind that your car is covered should you encounter any mechanical issue or breakdowns outside of its standard manufacturer-covered warranty period. Just make sure you read the fine print of any extended warranty policy to understand exactly what is and isn’t included.
Getting the best auto financing deal is all about doing your research, staying aware of what’s available on the market and making sure your financial position is as solid as possible by getting your credit score in order. By following the steps outlined above, you’ll be well on your way to finding the perfect car and auto loan for your needs.
