Smart Auto Loan

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Smart Auto Loan – The Confidence To Negotiate For The Best Auto Loan

Where do you draw the line when it comes to negotiating for an auto loan? Do feel you can find a smart auto loan without settling for the sales manager's so-called great offer? The thought of negotiating for an auto loan leaves most consumers frozen in their seat. However, entering a negotiating table with sound guidelines and under-the-table secrets boosts your confidence and ability to know when you're hearing a good deal.

What does your auto loan say about you? A few smart tips to consider are listed below.

• Car loan payments and credit history go hand in hand. If your credit history displays great performances on previous financial obligations, a dealer is more likely to approve a loan with low interest rates and maximum rebates.
  
• No matter if you're striking a deal for used or new auto, research the trade-in value (vehicle loan value) and retail price to find out where in the middle the sales manager is willing to settle.
  
• Car loan interest rates are tied into down payment and your accurate credit report. Used car loan interest rates carry a higher percentage than new cars. If you have excellent auto credit, find out how you can get a lower percentage than the current national average. A great source for car loan interest rates is Bankrate.com .
  
• Can you put down 10% of the negotiated price? This will not only affect your monthly payments but also your offered interest rate.
  
• Look over your payment schedule and how accrued interest affects the final amount. Can you afford to sometimes make an extra payment to offset higher paybacks?
  
• Your credentials and proof of identification make the process proceed faster. Some information to have on hand are (1) driver's license, (2) pay stub and proof of continuous employment for the past year, and (3) address verification for the past three years.
  
• Start out very low and only let the dealership work up to a certain point before you are prepared to go elsewhere. However, don't go to so many places that frequent inquiries about your credit history as this will start to affect your credit rating. Find out from friends and others “in the know” about practices at different dealerships before blindly walking into an unknown lot.