The money-knowing folks at MoneyWatch have given us some fine information that we sure could use: how to get lower interest rates on our auto loans.
This information has come exactly at the right time since car sales just keep on increasing, which will eventually lead to a rise in auto financing interest rates. Talking about the cause of rising sales, Edmunds chief economist Lacey Plache said, “Pent-up demand from consumers unable to get credit during the recession will continue to contribute to auto sales growth as these consumers get access to credit.”
MoneyWatch says that you can ensure that you get the best auto loan rate possible by following these simple steps:
- Get your credit score before you apply for a loan by going to annualcreditreport.com. Your credit score will, in a large part, determine what your interest rate is.
- Visit Yahoo Autos financing page to learn what the average loan rate is for people with your credit score. Having this knowledge protects you from being charged too high of an interest rate.
- Get financing before you hit the car lots by having a sit down at your bank or your credit union. Then, when you are at the car dealer, you will only need to go with the lot’s financing deal if it is a better for you than is the pre-approved loan.