Things to Remember When Shopping For a Great Car Loan

Searching for car loans becomes a major focus for anyone considering buying a new car or upgrading your old car. The range and variety of loans available means it's not always easy to figure out which is the best one for your situation and for your budget.
The majority of car dealers will have their own financing available for buyers who come onto the lot, but it is possible to source competitive car loans from many different lenders before you even arrive at the car yard.
A great place to start inquiring about car loans should be to find out your credit score. Do this before you even set foot at the dealership or car lot and start to talk turkey with the sales person. The really great interest rates you see advertised might only apply to those with excellent credit, with much higher rates applying to those people with slightly lower credit scores. If your own score is a little lower than you'd like, then perhaps consider taking a little time to do some simple things to raise it a little.
Your next query should be to your own bank or lender. A simple phone call query will tell you their standard interest rates on car loans. Always remember to ask if the bank has any conditions on receiving that particular rate, as you might find that some lenders will require that the car you buy is within a certain age. It's always a good idea to ask if that same interest rate applies for your particular credit score. Even though the bank may reduce your interest rate, you might find that the processing fees are increased to compensate. Check how much you'll be charged on processing fees or account fees.
Always ask the bank person you're talking to if they have a more competitive option available and if they're willing to negotiate for your business. That is important in these economic times. Also find out what the minimum down payment is that they will require, and find out if the interest rate is lower if you put more down, if that is an option for you.
Once you have some information, you're in a position to negotiate with confidence. You could continue to call other lenders to compare their car loan interest rates and conditions or you can approach a car dealership directly.
As previously mentioned, many car dealerships have their own finance arms and may be able to offer financing underwritten by the automakers instead of the banks. The interest rate they charge can often be marked up to provide the dealership with a margin of profit on each repayment you make. They can then raise or lower this margin at their own discretion, although if your credit score is low, they may not be able to negotiate very much on that.
By understanding that many car manufacturers and dealerships are struggling for business these days, you're in a position to negotiate with them for reduced interest rates on your car loan. If you've taken the time to learn a little information about how much you'll be charged by other lenders before you arrive, you're suddenly in a great position to know exactly how low they are able drop your rates in order to win your business.
Always keep firmly in mind that banks, lenders, car dealers and automakers all need your business so they can stay in business. This means you hold all the power in any negotiation. You can confidently ask them to negotiate on car loans and terms that suit your needs and your budget in order for them to win your business.
Lastly, although it may seem to be only common sense, shop around! You should spend as much time shopping for your car financing as you did in choosing the car you want. A couple of percentage points difference in the interest rate can mean the difference of a few hundred dollars in your wallet.