Best Car Loan Rate
Looking for the best car loan rate can be frustrating. Banks often hide their better loan deals from regular customers and many other lenders seem to find ways to introduce so many hidden fees that the best car loan rate you think you’re getting is actually twice as expensive by the time you pay your fees.
- Compare
Always take time to compare several different loan options from various lenders until you can identify the best car loan rate among them. There are websites available that allow you to compare different quotes online, but checking the website and the credit scoring requirements of individual banks yourself can sometimes uncover gems these sites might have missed. - Negotiate
Banks buy their money in at wholesale rates and then lend it out to you at retail rates. The difference in these two rates is their profit margin. This means that if you begin negotiating for the best car loan rate with a bank, they do always have room to reduce the rate they offer because their profit is already built into the rate they quote first.
You also have the option of showing one bank a quote you received from a competitor bank and then asking them to match the rate. Many times, the credit assessor will try hard to reduce the rate they originally quoted until you really are getting the best car loan rate – usually at rates lower than they advertise. - Hidden Fees
Nobody likes reading small print. Even worse, banks write their terms and conditions in language that only another banker can understand. They do this on purpose so that you won’t bother reading through it.
They hope you’ll just sign the documents and accept what the tell you. Never do this. This is where they hide their hidden fees. You might think you’re getting the best car loan rate, but those hidden fees can add up to quite a lot of extra money.
Always take time to read through the small print in front of a bank representative. If you see any fee, charge or agenda that you can’t understand, demand that the banker explains it to you. If they can’t, ask them to find someone who can.
If you see any hidden monthly account fees, statement fees, early repayment fees, termination fees or refinancing fees ask to have these removed. If they won’t remove them, explain that you’re taking your business elsewhere and continue shopping around for the best car loan rate with another lender.
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