Auto loans can be troublesome when you have to pay high interest rates. You may want to enjoy your new car but the loans may get you a little tied down and you may not be able to enjoy your brand new car the way you wanted to. Many buyers may get stuck with high rates because they did not do their research well. It is possible that you lower the interest rates on your auto loans and save a lot of money. You just need to be very careful about the company that you get loans from. There are a lot of things you can do to lower the rates on your auto loans. In fact, it is important that you do a lot of research before you buy any new product because it is your money and you need to be cautious about where you are investing.
Let us take a look at the things you can do to lower your auto loans interest:
- Credit report: There are three major credit bureaus that you can pull out your credit report from – TransUnion, Experian and Equifax. You are entitled to one free credit report each year and you can get more if you pay for them. However, the point is to pull out your report and check it for any misprints or any misrepresentations. Before you apply for auto loans you could start by cleaning up your credit report so that creditors have a good impression about you. Creditors check your credit report when you apply for auto loans. So, if you want that they should not see anything that you do not want should influence their decision about auto loans interests that they determine for you, then this is the best thing to do. The higher your score the lower your auto loans rates could be.
- Shopping around: This is the best way to get lower rates on auto loans. There are so many companies that are willing to offer you a quote and the best part is that they do it absolutely for free. If any company asks you to pay them any money to get a quote for auto loans then you may not want to work with the company. No legitimate auto loans company will ask for any money to give you a quote. It is wise if you seek quotes from at least more than 3 companies so that you can find out which one best suit your financial needs. Auto loans rates can get really high if you have not done your research well. The rates you get should also give you the term of the loan and you can do your math to see how much more money you have to pay for the entire term of your auto loans.
- Compare auto loans rates: Once you have done your research and got the different quotes, it is now time to compare the quotes and see which company offers the best one. If a company offers really low rates you may want to check carefully because there are several scam companies out there to get your money. Find out the term of the loan, the total amount you end up paying finally. Choose one that you can afford to pay.
- Contact your existing lender: You may want to ask your current lender to lower your auto loans rates. If your lender does not agree you may tell them that you have received lower rates from other auto loans companies. Your current lender may want to beat the lowest rates and keep you as a customer. This way you can get your auto loans rates lowered.
- Choose the best option: Choose the auto loansprovider who offers you the best rates and the best loan terms. When you apply for auto loans you need to find one that you can afford to pay back. If you are seeking revived auto loans from your current loans company then ask them to give you the new terms in writing and keep a signed copy as documentation. Again, if you are changing auto loans companies then you may want to fix an appointment with the new company for a refinance.
Author bio: Jonny Pean is a financial consultant and writer for EasyFinance.com. He helps people to tackle their financial problems related to loans, personal finance management and home equity issues.