Some drivers might not realize the process of obtaining a car loan is a shopping experience. When you shop for an air conditioner, lawnmower, blender or a new pair of shoes you look online and in stores for the lowest prices available. When you purchase groceries, you look for sale items and even read fliers in advance for upcoming deals and promotions.
Obtaining a car loan is a similar process and you have the right to compare the best deals available for your budget and needs. Lenders have significant control over the situation because they determine approvals and rejections for their company. Working in your favor, however, is the open Capitalist market and the numerous competing lender options available today.
Finding the best bank for auto loan deals is not simply a matter of accepting rates and terms as offered to you. Modern technology makes the lending world a whole lot smaller than it used to be. It is fast and convenient to take the rate and terms offered to you by your local bank and compare them to offers from hundreds of other lenders on the market today. Once you have a sizable down payment secured and your FICO score and credit rating where you want them to be, you can then begin contacting different lenders for quotes.
Each lender has its own set of qualification requirements and rate charts based on how the company chooses to do business. Some lenders are completely independent. Others operated in affiliation with particular automobile dealerships and manufacturers. Online-only lenders, local banks and credit unions all finance vehicle loans today.
To start comparison-shopping it is possible to conduct research on Google by entering both your zip code and the words “best car loan rates today” in the search window. When your search results appear remember to look for the word “Ad” in front of the top few listings. Search results with advertising placements might still be the same or as good as other listings, and often are. To be one-hundred percent certain, however, scroll down until the advertised listings stop and regular search results appear.
Beyond Google, many additional websites are available to help compare auto loan rates. For example, Invoicepricing.com and the Kelley Blue Book (KBB) are both trusted resources for finding the true market value of the make and model car you are buying. Information such as this gives you negotiating power to help obtain the lowest purchase prices possible. Other websites specialize in loan rate comparisons and lender referrals.
The Lending Tree facilitates one of those popular websites, as do Bankrate and Investopedia.