While it is harder to get a car loan with bad credit, it is not impossible. You may still get a car loan with bad credit, but the costs would be much higher. Borrowers with bad credit are viewed as risky to the lenders and therefore they charge a higher interest rate to offset the additional risks. That's it, follow these 4 steps to get the best interest rate and save money on your new or used car.Ī credit score is what lenders check to decide what interest rate to charge. Follow their instructions on what they need from you and the bank. They will work with the bank and get your paperwork done. If their rates are higher, then just tell them you already have an auto loan in place. Sometimes, dealers may lower their markup for financing to win your business. If they offer you a better interest rate than the one you have from your bank, accept it. ![]() Go to the dealer and check out their financing option. Check out financing options at the dealershipīy now, you should know which dealership to purchase your car from. If you are lucky and call at the time that they are trying to meet their quota for a bonus, you may be able to negotiate for a further discount.Ĥ. Sometimes, there could be a 1k to 2k difference between the offers from the different dealers.Ĭar dealerships may get bonuses from car manufacturers if they can sell a certain number of cars in a given month, and the sales agent may also get bonuses when they are able to sell a certain amount. Once you've decided on which car to buy, call all the dealerships that are within driving distance that sell the brand for their best price.įor example, if you want to buy a 2021 Toyota Camry, call all the Toyota dealerships and ask them for their best price. Test drive the cars so that you know which brand and model you like. If you are on a tight budget, consider buying an older model, you could save thousands of dollars. You will be amazed how much you can save just by comparing. When the newest model of a car comes out, there will be a big discount for the older models. Check them and compare them with your bank to see which one gives you a lower rate and lower overall costs.Īfter you learn how much loan you can get, you can begin shopping for cars that are within your budget.Ĭompare pricing from different dealerships.
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