subject: Auto Loans: Getting The Best Deal [print this page] Auto Loans: Getting The Best Deal
To get the best deal on auto loans, you must first make sure you have good credit. How do you know if your credit is good? Basically, anything above 800 is considered excellent credit, 750-800 is very good, 700-750 is good, 650-700 is fair (the average is actually around 678), 600-650 is bad, and anything below 600 is very bad. You can check your credit score anytime you want on-line for about a dollar, or even for free. If your credit is not where you want it to be, if you can wait to build up good credit before you get an auto loan, that would be ideal.
Once you have good credit, you are now ready to start shopping around for comparison. It is wise to have at least three loans you consider to be a good deal before you select one. Many times you will be able to get a better auto loan at a bank or on-line than at the car dealership. It is therefore wise to check other sources first for getting an auto loan before going to the dealership to purchase the car. If the dealership does not offer you a better deal, perhaps they would be willing to match the kind of deal you were able to get from elsewhere. If they cannot match the better deal, go with whoever has the better deal.
It is also very important to find out all the rules of the loan before signing. You do not want to be penalized for paying the loan off early, for example, or be surprised with any hidden costs or charges you were not aware of. So, in summary, make sure your credit is good, shop around, and know all the rules of the loan. Do those things and you will have done your homework for getting the best deal on your auto loan.
