Save On Your Next Car: 6 Tips

Purchasing a new vehicle can be a very stressful situation. Make sure you do all of the research that you need in order to feel comfortable making your decision, and you won’t leave with a sense of buyer’s remorse.

Here are 6 important tips that will help you save money on your next car.

1.Find your financing before you shop.

It is widely known that paying cash will save you the most money on your new vehicle purchase (as you will not be paying any interest). However, if you are unable to dish out the cash, explore your financial options outside of the dealerships or car lots. Obtain pre-approval from your bank or credit union for the lowest interest rate possible, potentially saving you thousands. Independent financing will give you more buying power than relying on the finance department at the dealership.

  1. Check your credit profile.

The interest rate you receive depends significantly on your credit score. Your credit score is used by lenders to determine how risky it is to lend you money, and will adjust the interest rates according to their evaluation. In order to make sure the lender’s assessment of you is as accurate as possible, check your credit reports for inaccuracies. Do this a few months before shopping so there is time to fix these inaccuracies and improve the interest rate you receive.

  1. Compare available APRs.

Typically, the loan rates you are offered are shown as an annual percentage rate or APR. APR includes interest and fees, allowing you to compare loans in an apples-to-apples fashion. A lower APR will save you money over the length of your loan and lower your monthly payment. In order to determine which type of loan will work best for you, use an online loan calculator to experiment with loan amounts, interest rates and loan terms.

  1. Avoid long-term loans.

Longer-term auto loans have become increasingly popular as monthly budgeting concerns are often taken into consideration more than the total price paid over the life of the loan. Terms as long as 84 months are being reported more frequently than ever before. Though these loans are gaining in popularity, this does not mean they are a good idea. A longer loan will provide lower monthly payments but you will end up paying much higher interest. Keep your term as short as you can while still being able to fit it in your budget.

  1. Compare rates and terms.

Shop around for the best interest rates and loan terms available. A dealership may be able to offer you the best rates for your situation, with some new car purchases being financed at 0% for 60-72 months to buyers with great credit. If the dealership is not offering incentives on brand new vehicles, credit unions will likely offer you the best rates, educate yourself on your options.

  1. Focus on total cost.

Don’t get burned, concentrate on the total cost of the loan you are applying for rather than the monthly payment. The best options for lowering the total amount of your loan are to bring in a trade-in or a significant down payment.

The bottom line:

Do your research, exercise your options, and make sure your credit is going to help you obtain approval. If your credit leaves some room for improvement, CreditServices.com can help you.

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

7 Ways Credit Helps You

By now, you are well aware that credit plays a significant role in your financial success. But are you aware of how widespread the influence of your credit is?

Most consumers know that credit scores are important, but usually don’t know how often their credit makes an impact on their life. Credit scores mostly come into play when applying for some form of new lending, which is why it is very important to check your credit reports before applying for a loan or credit card. There are plenty of occasions when a good credit score will help you save money or reach your personal and financial goals, which is why you should regularly check your reports.

Paying by credit card is easy and comfortable

Here are a few ways your credit can help you:

  1. Apartment Hunting:

Rent payments generally are not reported to the credit bureaus, but having a strong credit profile shows your ability and willingness to pay your bills in a timely manner and can help you get into your apartment. In a competitive rental market, which currently exists, a better credit score will make your search quicker and easier.

  1. Setting Up Utilities:

If your utility provider notices that your credit profile has signs of late payments, you may be required to put down a deposit, or a higher than normal deposit when you sign up. These deposits are usually refunded or credited back to your account, but nonetheless, it is better to not have to put down a deposit in the first place.

  1. Car Shopping:

Unless you’re planning to pay cash, you will need an auto loan. The better your credit score is, the lower your interest rates will be. Lower interest rates can also be obtained with a larger down payment, but a higher credit score will be a benefit in any scenario.

  1. Insuring Your New Car:

Insurance underwriters can use your credit score while determining your auto insurance premium, and in some states your credit score will have a significant impact on what you pay. According to industry experts, a credit score can be a better predictor than your driving record.

  1. Buying a home:

Mortgages are huge loans spread over many years, so a few credit score points can translate into tens of thousands of dollars of savings. If buying a home is not on your immediate radar, you should still be monitoring your credit and trying to improve your profile, so when you’re ready to buy, your credit score gets you the most value for your money.

  1. Emergencies:

If you don’t have the savings to cover an emergency, you will likely need some sort of financing. Great credit will give you access to a variety of lending options from low-interest credit cards to personal loans. A stressful situation will only gets worse when you start missing payments because you can’t get a loan.

  1. Repaying Student Loans:

Depending on your current student loan rates, you could stand to save a lot of money by exploring refinancing options. A lower interest rate requires a good credit score, the longer it takes to improve your credit, the more money you will lose in interest.

Your credit profile will determine a variety of aspects of your life, adding up to have a very significant impact on your financial life in the long run. Make sure your profile will help you.

Get Started

Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

Ready For Car Shopping?

Your credit score influences the rates that are available to you. Most lenders will not fully review your credit profile, instead they rely mostly on your credit score and some application information.

customer and salesman with car key
transportation and ownership concept – customer and salesman with car key outside

If you have a 750+ credit score, you will receive the best interest rates available, which can sometimes be as low as 0%! However, people with major credit problems can usually be approved for auto loans, but at very high rates. The best auto loan rates are generally offered by credit unions, and online lenders, not at the dealership.

When shopping for your loans, remember that you have a 30 day window where similar inquiries will be counted as one and only drop your score 5-15 points rather than multiple inquiries that will be 5-15 points each.

Educate yourself, monitor your credit, and stay within your means to get the most out of your auto loan.

Learn More

Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

Auto Loans: Will Your Credit Help?

Vehicles are a large purchase, most people will own several in their life; with the average American owning 12 vehicles throughout their lifetime. Unless you are able to pay cash for every vehicle you will own, you’ll need an auto loan, and your ability to obtain one depends heavily on your credit score.

To finance a vehicle purchase you need a loan, and a potential lender will want to know how risky it is going to be to give you a loan. Credit scores are a risk assessment formula based on your credit history. Your credit score is a huge part of determining how much you can borrow, what interest rate you will be charged on that loan and how much your monthly payment for that car loan will be.

With a low credit score, you may have to put up a much larger down payment, utilize very high interest rates, or even be turned down. CreditServices.com has helped thousands of clients qualify for auto loans with better rates and lower monthly payments that will save them thousands over the life of the loan. Arm yourself with a great credit profile, and walk into that dealership with confidence.

Learn More

Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.