Before you even set one foot onto a car dealership check and know what shape your credit is in. Even if you know it is in good shape… here’s a flash for you – credit reporting companies make mistakes… and many of them. So, be smart… begin your car buying process the correct way… know your credit score.

You should begin the process of self evaluating your credit well in advance of doing your car shopping.

Why? Because if you find incorrect information or reporting on your credit report it will take some time in order to get it corrected or removed… and if you don’t you may pay for the mis-information quite handily in the form of paying a higher interest rate than you would otherwise have to.

For instance if you were to finance $20,000 for 5 years at 0% interest rate (obviously you’d pay no interest) your monthly payment would be $333.33. If however, because of credit issues (either correctly reported or not) you signed up at 7.9% your payments would be $71.00 dollars per month more for a painful $4,274.28 more in interest payments alone.

And just to pile on a bit more… this means that your loan payoff will always be higher so if you get the urge to trade cars two, three, or four years into your loan… you’re going to be much further upside down!

There are three credit reporting agencies – Equifax – Experian – Trans Union – and it’s best to get a report from all three. Also, if you are married you’ll want to get your spouse’s as well.

First check to determine what your FICO score is. FICO scores can range from about 300-900 with the higher the number being the stronger credit score. Lenders have differing criteria in how they evaluate and grade FICO scores so the break lines between poor – average – good – excellent can vary somewhat but generally the best auto financing rates are granted to those with a score of 700 or better.

Basically your credit score is based on five determinants: payment history – unpaid debt – how long you’ve had established credit – how much credit you’ve acquired or applied for lately – the types of credit you’re carrying.

The Federal Trade Commission (FTC) has a good website for understanding what your rights are under The Fair Credit Reporting Act.

Work to update outdated information that may be a part of your credit report and by all means begin the process of correcting any mis-information or incorrect payment history. Once you have corrected the mistake, be sure to check your credit report again in about 60 days to see how much of your credit report has changed and if your score has improved.

Working to get your credit report in order may take some time and diligence, but it’s like paying yourself. Remember, the difference of a not so many point swing in your credit score can get you that 7.9 interest rate instead of that 0% interest rate.

It’s your money… don’t waste what you can control.

If you don’t have enough cash on hand to purchase the car straight out, you will need to consider your financing options. If you are a smart shopper you should figure out how you are going to finance the used car before you begin shopping. There are three main components that will come into play when you purchase a car. The first is the monthly payment, the second is the down payment and the third is the price of the car.

The monthly payment is going to be how much you can afford to pay each month. This will help the lender determine the life of the loan and when the payments will be due. Many lenders will require that you use the car to secure the loan. The car can be used as collateral and in the event that you default on the loan the lender will repossess the car to satisfy your debt. Monthly payments can also be lowered if you are able to make a down payment.

The down payment is how much cash you can afford to put down before financing the car. This will help to reduce your monthly payments as well. The better a down payment you are able to supply to the bank, the less amount of money you will have to finance through the lender.

The purchase price will be determined to the answer to the two previous questions. These numbers are important to have handy when you are negotiating over the price of a car. If you have these two figures in hand while discussing the price of the car, you will be able to remind yourself of what you can really afford to spend.

You have two options in financing a car. One is to finance the vehicle though your personal bank or credit union. This route is highly recommended, as you will be able to work with lenders that you are already familiar with. You will also be able to be eased in your mind, as your money is going to be sent to a reliable institution. Lower interest rates can also be found at reliable lenders. Using a bank or credit union also makes it easier to stick to your budgeted amount and allows you to find competitive interest rates.

Your other option is to finance through the dealer. This is an option for those individuals who find their credit rating less than good. Many dealers work with people with poor credit and will prearrange financing through an independent source.

When you are car shopping you will want to be sure that you leave yourself enough time to arrange the loan before purchasing the car. You want to be prepared to hand over the money in the event that you do find the used car of your dreams that you have been shopping for. You also do not want to be dependent on borrowing money from a dealer, as they often do not have the best financing and interest rates available, especially on their used cars.

For more Car buying tips visit Atlanta Used Cars at http://www.UsedCarsAtlanta.us and Dallas Used Cars at http://www.UsedCarsDallas.us.

Is it possible to own a new car, even if you don’t have $20,000 to spend? Absolutely. Auto loans make car ownership an affordable reality, and virtually anyone can arrange for financing. If you have sufficient income and a good credit rating, you will be able to choose from a selection of auto loans.

Step 1 Choose your wheels before arranging your loan. The bank or finance company will want to know what you’re buying, and how much you’ll need to borrow. Shop around by checking automotive websites and visiting local car dealers. Once you know exactly what you want to buy, you can negotiate a price with the seller. With price in hand, you’ll find it easier and faster to secure your financing.

Step 2 Shop around for the best interest rates. There are online websites like http://www.Bankrate.com that publish surveys and polls of loan rates across the United States. The rates of auto loans will fluctuate with the market, and they definitely differ from lender to lender. Shop around to find the lowest rate and best lending terms. Checking with local banks, credit unions and even car dealers can save you money.

Step 3 Purchasing a new car is a costly, and sometimes risky business.

Auto loans involve a lot of money, and you need to prevent any possibility of getting ripped off. Check with used car values to see how much your current vehicle is worth. Knowing your car’s value will help you to get the most money for your trade-in.

Consult a black book or research online to find the current market value of your vehicle.

Step 4 Determine how much you’re able to spend as your down payment. Providing cash up front can help you to secure an auto loan, as it proves to the lender that you’re responsible and willing to repay. It also decreases the amount of principle and interest you’ll pay throughout the term of your loan. Some lenders require a down payment of twenty percent of the vehicle price. Remember that the value of your current vehicle may be applied toward your down payment.

Step 5 Once you know the type of car you’re buying, the purchase price, the available rates and the amount of down payment you’ll need, it’s time to shop for a lender. Be careful in this step, as there are many shady lenders who are quick to hand out cash in exchange for very steep repayment amounts. Compare interest rates, the loan term (two years, three years, etc), monthly payment amounts and, of course, how much you’re able to spend. These factors will all help to determine your choice of lenders.

Step 6 Don’t panic if you don’t qualify with the first lender you choose. There are literally endless auto loan options available to you. Just be sure that you’re not living beyond your means. You may need to save a little more to come up with a bigger down payment, or simply choose a less expensive car.

Step 7 It’s easy to create a lousy credit rating, and the poor rating can hound you for a long time. If your credit rating is keeping you from securing an auto loan, you can begin working to rebuild it. Pay your bills on time, and clear up any outstanding debts. After six months, you’ll be able to reapply for a new credit rating. If this is not an option, you can choose to look into bad credit auto loans. Insurance companies that offer bad credit loans don’t require their customers to submit their credit histories, so it is possible to secure an auto loan despite poor credit. However, remember that the financer will view you as a risk, and you will pay higher rates.

Auto loans make it possible for virtually anyone to buy a new car. It’s why you see so many new vehicles on the road today. If you think you can’t afford the car of your dreams, shop around. You might be surprised at what you find.

Is it possible to own a new car, even if you don’t have $20,000 to spend? Absolutely. Auto loans make car ownership an affordable reality, and virtually anyone can arrange for financing. If you have sufficient income and a good credit rating, you will be able to choose from a selection of auto loans.

Step 1 Choose your wheels before arranging your loan. The bank or finance company will want to know what you’re buying, and how much you’ll need to borrow. Shop around by checking automotive websites and visiting local car dealers. Once you know exactly what you want to buy, you can negotiate a price with the seller. With price in hand, you’ll find it easier and faster to secure your financing.

Step 2 Shop around for the best interest rates. There are online websites like http://www.Bankrate.com that publish surveys and polls of loan rates across the United States. The rates of auto loans will fluctuate with the market, and they definitely differ from lender to lender. Shop around to find the lowest rate and best lending terms. Checking with local banks, credit unions and even car dealers can save you money.

Step 3 Purchasing a new car is a costly, and sometimes risky business.

Auto loans involve a lot of money, and you need to prevent any possibility of getting ripped off. Check with used car values to see how much your current vehicle is worth. Knowing your car’s value will help you to get the most money for your trade-in.

Consult a black book or research online to find the current market value of your vehicle.

Step 4 Determine how much you’re able to spend as your down payment. Providing cash up front can help you to secure an auto loan, as it proves to the lender that you’re responsible and willing to repay. It also decreases the amount of principle and interest you’ll pay throughout the term of your loan. Some lenders require a down payment of twenty percent of the vehicle price. Remember that the value of your current vehicle may be applied toward your down payment.

Step 5 Once you know the type of car you’re buying, the purchase price, the available rates and the amount of down payment you’ll need, it’s time to shop for a lender. Be careful in this step, as there are many shady lenders who are quick to hand out cash in exchange for very steep repayment amounts. Compare interest rates, the loan term (two years, three years, etc), monthly payment amounts and, of course, how much you’re able to spend. These factors will all help to determine your choice of lenders.

Step 6 Don’t panic if you don’t qualify with the first lender you choose. There are literally endless auto loan options available to you. Just be sure that you’re not living beyond your means. You may need to save a little more to come up with a bigger down payment, or simply choose a less expensive car.

Step 7 It’s easy to create a lousy credit rating, and the poor rating can hound you for a long time. If your credit rating is keeping you from securing an auto loan, you can begin working to rebuild it. Pay your bills on time, and clear up any outstanding debts. After six months, you’ll be able to reapply for a new credit rating. If this is not an option, you can choose to look into bad credit auto loans. Insurance companies that offer bad credit loans don’t require their customers to submit their credit histories, so it is possible to secure an auto loan despite poor credit. However, remember that the financer will view you as a risk, and you will pay higher rates.

Auto loans make it possible for virtually anyone to buy a new car. It’s why you see so many new vehicles on the road today. If you think you can’t afford the car of your dreams, shop around. You might be surprised at what you find.

If you finally decided to get rid of your old and ugly car, don’t jump into a car buying without calculating.

It’s o.k. that you already know what you want. The latest Ferrari model, of course. The red one you saw at http://thecarofyourfantasies.com. But maybe you should reconsider it. By the way, did you know that red cars and sports type cars are stopped more often?

Purchasing a new car is a complicated financial operation and a highlight of your life. Take it seriously.

First, have a look at your family budget. Sit down and check all your household expenses, as well as cash on hand and your take-home pay and determine what you can reasonably afford to pay for a new car. According to the experts you shouldn’t spend on your car more than 20 percent of your monthly income.

Afterwards check your credit. Start this process months before you plan to purchase, if possible, because if you have incorrect or outdated information that’s lowering your score - and therefore raising the interest rate you’ll have to pay - it can removed, but it takes at least 60 to 90 days.

To calculate monthly payments, you should factor in proposed purchase price, the down payment, interest rate and term of your loan. All will affect how much you can afford to spend on your car.

Don’t worry if you can’t get a standard loan, there are alternatives. If the banks, building societies and credit unions won’t lend to you because you’re self employed, newly arrived in the country or have a poor credit history, consider the booming non-conforming and "low doc" loan market.

A number of non-bank lenders offer loans which especially cater for this type of borrower. The interest rates on non-conforming loans are generally higher but come down after a few years of on-time repayments.

Think about all the expenses of a car: Insurance rates, fuel costs, maintenance, repair and not only the purchase price. Some luxury cars and not American-made cars cost more to repair.

Decide if you want to buy a new car or a used one. Both have pros and cons. A used car costs significantly cheaper but there is no comprehensive new-car warranty, not as many safety and convenience features but a questionable maintenance.

As for the timing, the two best times of the year to buy a car are the end of December (when dealers are competing for Christmas shoppers) and between July and October (when dealers are making room for new models).

You should also consider what’s the primary use of the car, who’ll drive, where will you use the car and so on.

Problems in auto financing usually occur when the contract is prepared in the finance and insurance office, called “F&I” room. So when your deal goes wrong, chances are it’s about something that occurred only at the time when negotiations are almost over. This is because the F&I room is where you, the car buyer, can see much of the potential savings regarding your auto loan go up in smoke. So you see just how important this so-called F&I room is?

Downer #1: Ignoring the F&I Room

Now, the thing with car buyers is that they rather have this not-so appealing tendency to focus on the car they want to buy, and just ignore the F&I room as nothing but tedious paperwork. It’s not very appealing because it is, after all, your money being held in negotiation here and if you don’t pay attention to it, there’s a chance you’ll lose a big chunk of it.

Upper #1: Focus on Financing

While it’s true that the whole point of car buying is to own that new car you’ve been eyeing, it’s not wise to ignore the financing aspect of it as well. The two must necessarily go hand in hand or in you’re in for a tough spot with a bad investment on a car loan. Don’t view the financing part as paperwork that should be completed as quickly as possible so you could drive away in your new car. Don’t make the same mistake other car buyers are making. Be aware of how vital the F&I experience is to car buying.

Downer #2: Inflated Interest Rates

Top on the list of the things you must do involving auto financing is to have the deal agreed upon by you and the salesman be put in writing in a binding contract. Often involved at this part of the procedure is to determine monthly auto loan payments based on an interest rate. Now, as you well know, the interest rate varies from car buyer to car buyer. Your credit is only one of the factors and if the interest rate a car buyer qualifies for is inflated, then the dealership can make extra profit off your loan. That’s merely one of the pitfalls in auto financing.

Upper #2: Get Independent Auto Financing

Fortunately for you, there are solutions to that particular problem. One way to do it is to obtain independent auto financing BEFORE going to the dealership. When you have the approved auto financing option on hand, you can then proceed with the deal as a “cash buyer” so to speak since you already have the cash in hand from the loan and you are merely buying the car from the dealer with that money. No other relation exists between you and the dealer aside from that of a seller and a buyer. No such thing as a debtor and a loan creditor.

Another advantage to this particular solution is that you can negotiate with the car dealer only upon the price of the car. You don’t have to worry about getting approved for financing with him since you already have that, thanks to your conscientiousness and foresight. Car salesmen prefer customers to be “monthly payment” buyers as this makes it easier for them to obscure the total cost of the vehicle, to the detriment of your savings. So wizen up and take that independent auto financing option available.

Downer #3: I Don’t Know My Credit Rating

Now, that’s a very common statement car buyers make. They know their blood pressure level. Heck, they even know their blood count. But credit rating? Only a tiny smidgen of the population knows that. Yet, it cannot be stressed far enough that knowing your own credit rating could very well mean the difference between a good investment and a bad one.

Many car buyers don’t know their credit status when they apply for an auto loan. I don’t know if they’re just lazy or simply don’t know that determining the kind of interest rate you get depends largely on your credit score. I’m praying for the former because that can be cured. The latter just answers itself. Therefore, it’s critical to obtain your credit report before shopping for a car so you will know exactly where you stand when it comes to your auto financing options.

Upper #3: Where to Get Credit Report

The solution to not knowing your credit rating is to get a copy of your credit report. And where can you get that copy? There are a number of sites that offer it for a minimal fee. These sites are:

• http://Equifax.com

• http://Experian.com

• http://TransUnion.com

Order a copy of your credit report from the above sites and look for items that may stand in the way of you getting a good rate. In case of any errors, correct them promptly and make sure that all your lines of credit are in good standing. Also, while you’re at it, watch out for any signs of identity theft as this crime has become rampant these days, and then contact the credit bureaus for help on this particular issue.

Downer #4: The Last Temptation of Mr. Car Buyer

Granted you are a really conscientious buyer and so far you’ve managed to avoid many of the pitfalls and downers we’ve outlined above. You made it. You have an approved auto financing program from an independent auto financing company and are now on your way to the dealership. Nothing can possibly go wrong now.

Ah, but how wrong you are. Because once you get to the dealership, the smooth-talking salesman will try to egg you into overspending.

Upper #4: Set a Price Range

Having a budget is the sensible thing to do. If you set a sensible price range for yourself, then you have less reason to go beyond that range and succumb to the temptation of overspending. If you’re really firm on that budget, no amount of sales talk can sway you.

Creating a budget for a car is easy once you have some idea on what financing options are available to you and the price of the car that you want. Remember that the dealer’s offer is often marked up – that is, it is a percentage higher than the real price set by the car maker. One good tip is to make sure that your monthly car payments and related expenses do not exceed about 20 percent of your monthly net income.

Downer #5: Discounted Financing vs. Rebate

Here’s the dilemma to car buying: Many dealers offer a choice between discounted financing or a rebate, but not both. Discounted financing means that you get zero-percent financing while rebate means that you get a certain amount of cash some time after purchase. The common error many car buyers make is that the zero-percent loan will deliver the most savings. But will it really?

Upper #5: Get the Cash Rebate

In most cases, it’s better to get the cash rebate and apply it against the purchase price of the vehicle. If you already have a pre-approved car loan, then that’s even better since you have positively no need of additional financing from your dealer. Just use your car loan to finance the car and let the rebate handle some of the charges.

If you are buying a used car, you probably want to save some money. This means that you need to prioritize what is most important to you in a car. This article will help you assess your needs and your wants, so that you can find a car that suits you perfectly.

Cost

Look at the cost of a car. There is no point in window shopping at fully-loaded $40,000 trucks if you will only be able to afford a $4,000 truck in the first place. When you are establishing your budget for your car, be sure to account for how much the insurance will likely be, how much gas you will be spending (although this figure does change, it is best to go in having at least an idea), and regular maintenance. To budget for maintenance, you will need estimate the costs of 4 oil changes a year, plus some extra money just in case. Used cars are, well, used: they aren’t new are generally not under warranty. If you want a warranty, consider buying a used car from the dealership, who can often offer warranties even on used vehicles.

Suitability

What kind of driving do you do? You probably don’t need a four-wheel drive behemoth of an SUV if you do mostly city driving. Conversely, if you live on a gravel road, you might feel more comfortable driving in winter if you have something larger than a neon. For most drivers, the way that you drive a car will mean that you are open to many options. However, if this is a limiting factor, it is important to take into consideration.

If you are a commuter, then you will have to take other factors into consideration. You might not want to buy a car with a very high mileage, because you will be adding the miles to that odometer. You might want to find a car that has very comfortable seats to make your ride go better. Things that could be less important, like the stereo, become much more important when you spend a lot of time in your car each day.

Look

Some people would rather have a car that looks good or prestigious. It’s okay to admit that you are one of those people. For instance, for $3,500 you might be able to buy a 6 year old Honda civic; this same money could also buy you a much older BMW. If you value appearances, don’t lie to yourself when you are shopping. You want to get a car that you will love, and there’s no point looking at Ford Focuses if the only thing that will spark your delight is a Ford Mustang.

Load

How many people do you normally travel with? What is the most number of people that you have taken in your current car at once? If you don’t already have a car, estimate the number of people you will have with you on a regular basis. If you only drive around 7 people during the hockey tournament once a year, you can probably skip buying a minivan. However, if you normally drive three people around, it might be a pain to get a two door vehicle. For truck drivers, you will want to consider the amount of load that you generally put in the back of your truck to help you judge your purchase.

Your Loan

Not only do you want to get the right car, you want to get the right car loan. It is wiser to have your financing lined up before you go to a dealership. You can set up used car loans at any bank: but one often overlooked type of used car loan is to go to a credit union, where you can generally get lower interest than at a major bank. For more information on loans, (and we won’t even try to sell you a loan!) visit www.theguideto-carloans.com.

In the End

You will be the one driving. Make the decisions based on your needs and what you feel is right. Though it is great to get lots of advice (and sometimes it helps to take someone savvy about mechanics along with you to check out the car), considering these facts will help make you capable of choosing the right car.

There are a few things that you should always look for if you are buying a used car. Here are the tips that you will need not to get a lemon.

1. Warranty Facts

You can sometimes get a car that is still under warranty. If this is the case, check with the warranty (perhaps call the number in the warranty book) to ask if there is anything that you need to do to keep the warranty when you buy the car. This often just involves sending out a letter with the purchase information to the dealership.

If you buy from a car dealership, you can often get warranties on used cars. If you want peace of mind when purchasing, consider this option for sure.

2. Warning Signs

If the odometer reading doesn’t match the wear and tear of the car, then you should definitely ask for some records.

If there is any vagueness about getting the service records for the car, you might want to walk away.

3. Getting a Good Price

Because the cost of new cars is going up, there is more of a demand for used cars. This means that some dealerships believe that they can take more money than the car is worth. There are a few things that you need to do to get a good price.

Do your research; check online and in used car guides (often available at the local library) to find out what the prices of cars listed online to sell are. If you are uncertain about buying a car online, then don’t. Often purchasing a car online means that it will come from a long distance, and as such, you will have to pay exorbitant shipping or delivery costs, which will not be worth the money that you are saving off the sticker price.

4. Making the Payments

Instead of getting a car loan from the dealership and paying the dealer or the seller monthly payments, consider taking out a loan from the bank. You will often get better interest (or financing, as it is called with cars) rates. Go to a bank or credit union before you go shopping for your car. Salespeople will try to talk you into going with the dealership’s rates; you will be better off if you already have your financing set up. Credit unions can sometimes offer even better rates than banks on loans and are an often-overlooked choice.

5. The Information to Get

In Ontario, and in some states, you can ask to get the used vehicle information package. This will have the details of the previous maintenance and ownership history of the car.

Always do a complete visual inspection of a car. Even if you are buying a car from the internet, buy one from your province or state so that you can go and check it out first. Alternatively, agree with the seller that you have the right to return the car for a full refund (including shipping) if it does not meet your standards.

6. What not to Trust

Don’t judge the use of a car by it’s brakes; a dealer can buy new brake pads for less than $10, which is often an easy fix for a car.

If a car has rear-door-hinges that are very worn, it might have been used as a taxi, and you should probably find another one. Check the roof of the car to see if there have been any holes filled in; this could have been a sign for a delivery vehicle. They also often have been used a lot.

Be careful if a car looks like it has been freshly painted. This could mean that it has been in an accident that is trying to be covered up.

7. And finally…

Buying a used car can be a great deal for you. You can save money on the car itself, and you can get a safe means to travel. Remember, the condition of the car is more important than if it has had multiple owners, or even the odometer reading. Good luck shopping!

Your car has broken down, and now you need to pay for towing, and repairs. Sometimes these repairs cost unexpected hundreds or thousands of dollars. What are your options?

1. Be Prepared

The best way to avoid an emergency is to be prepared for an emergency. If you can set aside a little bit of money each month in case of any emergency (be it medical, automotive, or accident), then you will be able to manage any unexpected situations. However, if the time has come and you haven’t planned ahead, there are still some ways that you can get money.

2. Stay Calm

One of the most common mistakes that is made during emergencies is to lose your cool. If you lose your cool, you might forget to use common sense. Use your common sense to shop around. Even if you need a tow right now, consider calling a few places for quotes before having them send someone over. The ten minutes that it takes you to make some comparisons might save you twenty dollars or more. That makes the use of time well worth your money. Remember, you will be late anyway, so take your time in getting there.

When the tow truck driver arrives, be sure that you know where you want to have your car towed. You should also do some comparison shopping for this. You can even call a friend and have them make some of your phone calls for you. If you don’t know what is wrong with your car, have it taken to a mechanic or dealership that you trust. They will tell you what’s wrong, and you then be able to decide how much (it might be all) of the work you want to have done.

3. Review your Options

When you buy a car, you often get a warranty. You might be signed up for AAA or CAA. Your insurance company might cover some of the repairs needed for your car. Before you go about paying for all of the repairs out of pocket, find out what repairs are covered. Then get approval from the institution that will help you pay. It is easier to get them to pay upfront than to get them to reimburse you.

Consider keeping a membership for CAA or AAA. This means that you will have free towing if you are ever in an accident or if you ever have a breakdown. There is an annual fee, so you would have to weigh the pros and cons of membership. I, personally, find that I have gotten a lot back from my membership, including a peace of mind knowing that I am covered while I travel.

4. What NOT to do

If you need to pay for your emergency repairs, do not get a pay day loan. Pay day loans have exorbitant interest rates and will make it hard for you to get back on top of your debt.

5. Get the best interest

Find out where you will be able to get the best interest rates for the money that you will have to spend. If you take out a loan, then you will be able to pay it back in small pieces throughout the year, rather than taking an upfront loss. This also works if you cannot pay for your car.

If you put the car repairs on your credit card, remember that you will probably be paying a higher interest rate than if you got a car repair loan, or if you went to a bank or credit union. Check the interest rates that varying places offer, including at the dealership if you are having your car repaired there.

6. In the meantime

While your car is in the shop, be smart about how you get around. Don’t take taxis everywhere if you can’t afford them! Ask friends for lifts; they will understand if you are in need because of unexpected car repairs for a few days. Take the bus for a few days. Walk or bike, if possible. Set up a temporary carpool with a co-worker (this could even work for you when you get your car back!). Don’t let the expense of car repairs get larger because you don’t have your car.

When purchasing your new car, car dealers often try to talk you into getting a car finance loan with their in-house financing department. It is often easier to get a loan with dealers than with banks, but the downside is that these car finance loans often have higher interest rates.

If you decide to use your dealer’s car finance loan, make sure to negotiate for a lower interest rate. There should be some negotiation room as dealerships usually have several loan sources, each with its own interest rate level, such as the manufacturer’s credit company or the local bank. You should also investigate other sources, such as your bank or credit union.

You should seriously consider a car loan refinancing if you initially did not get 0% to 3% APR car loan from the dealer or bank. By refinancing your car loan, your current loan is paid off with the new loan coming from a different lender at a lower interest rate. You can save more money with lower monthly car loan payments thanks to the lower interest rates. You will also be able to accelerate your car loan payoff in a shorter period of time.

It makes more sense to refinance your car loan earlier as the interest is usually paid in the earlier payments. The earlier you apply, the more money you can save. However, if you refinance after the fourth year your savings will not be as much.

When shopping for different refinance car loan packages, make sure to evaluate them not just on the interest rates offered. Compare also other fees related to the loan, prepayment penalties, and the terms for the conversion options. You should also find out the lock-in period for the different loan packages. The lock-in period is the period in which the interest rate quoted to you is guaranteed, and ranges from 30, 45 to 60 days. The longer the lock-in period, the higher the price of the refinance car loan.

With your savings from refinancing, you need to put it to good use. If you continue to make the same payment amount, you will be able to reduce the principle owed much quicker. If you lower the monthly payment to the new required amount, you won’t be paying it off sooner, but at least you will be paying less.