When it comes to buying a car, you, of course, want to get the best rate you can on an auto loan. To do this, there are several tips you will need to follow. Remember, the best interest rate doesn’t always equal the best deal. If the loan comes with a hefty one-time fee, this could easily make it the worst option. Here’s a look at three tips you need to follow to ensure you get the best auto loans.
Shop for No More Than Two Weeks
Every time you apply for a loan, it will impact your credit score. Ideally, you’ll want to do all of your loan shopping within a two-week time period. In doing this, all of the inquiries that you make for a loan will show up as a single inquiry on your credit score.
Fix Your Credit Score
There are many people who check the credit score and find discrepancies. A single error could be lowering your score significantly. Fortunately, it’s not that difficult to fix your credit report. All you have to do is prove that an error has occurred. For example, if there is a certain loan that shows past due or uncollected and you have paid it off, you can contact the credit bureau and provide proof that you have paid off the loan and they will fix your credit report. This will help ensure you get the lowest auto loan rate possible.
Look at the Total Loan Amount
Don’t look for a loan with the lowest overall payment. Instead, look at them from a total overall cost. For example, a loan payment of $200 a month at four years is going to end up costing more than a loan at $250 a month for two years.