If you are looking to get a new car, then there are important things to consider – namely the cost of the particular vehicle you wish to attain and the terms you can get with regards the auto finance. So it goes without saying really, that you want to ensure your finance rates are decent, or as good as you can get. If you are to purchase via an auto dealership and also finance through them too, you will tend to find that the normal procedure is to link you with their lender of choice, which is often the maker of their car brand – for example Chrysler Credit or Ford Motor Company among others.
It’s wise for you to know that you still have other options you can take. The higher your credit standing with the credit rating companies, the stronger a position you will be in and the more options you will have to choose from. You may wish to approach your own bank and ask them to finance the deal. It can be the best route for you, offering you the cheapest over-all deal. By attaining auto finance away from the car dealership you can reduce negotiation, and thus reduce the headaches the whole procedure can take. You do not have to go to your own bank, of course. This is just one option. You could instead have a look at what is on offer to you on the internet.
So, let’s have a look at some figures for auto finance that are commonly available right now. The national rate in the United States to finance a new auto over a 36 month period is 6.89%. Over a period of 48 months this rises to 7.12%. And for 5 years, it’s up to 7.32%. These figures are for a new auto. For used, you have to entertain slightly higher numbers – 36 months for example is 7.5% annually.
These figures are really your target figures. If you can get anywhere near this sort of level then you are doing very nicely. To attain the best deal on offer though there are a few things that are vital. First, having a great credit record is a must. With a less-than great credit record you will be unable to attain the best auto finance deal. You may wish to work on the credit record before considering the purchase of a car. Another thing to do is to purchase at the end of the month when the sales people are fairly desperate to improve their own figures and therefore more keen to sell.
Do not offer up to the salesperson what figures you have in mind when you first approach them. Let them make an offer to you. Never take them up on the first offer. This will be higher than what they are expecting from the deal, so make sure you negotiate them down from the initial figure given by them. And there we have some ways to reduce the overall auto finance deal we can hope to attain. Be patient and be methodical and you will assure yourself of the best deal that is possible.