Searching for a new or used car is a dreaded chore for most people. For me, I find it entertaining and a fun new challenge. I see it as a sport because I was taught some not so secret tricks to help make the process easier and less expensive.

Destressing while buying a car

You should not be afraid to buy a car because the salesmen are not going to bite you none forced you. Show confidence in what you want and show them you know the vehicle you are interested in. but to make sure you will feel comfortable with that, you must do some research before going to the car dealer.

Most people search for a car before they even think of the price, interest rates or where to get a pre-approval. This is the way many generations have been doing it.

When I was about to buy my first car, I was so excited about it that I didn’t even think to compare interest rates or get a pre-approval from a bank that I was already established with. Over the years I have learned the hard way, how much of a difference some diligence can make before searching for a car. I have pretty good credit and I have worked to get it there. This should mean that I should get a better interest rate.

Some banks own stock in car dealerships or offer incentives to their salesmen to get a potential buyer to apply for a loan through their bank. Sometimes these can be great rates from a good bank, however, often these rates could be marked up.

The interest rate you get can make a huge difference in payment size. When I purchased my last car, I had a pre-approval from my credit union for 1.5% interest that I got before I even went looking for cars. I didn’t tell the car dealership this and asked for the options their affiliate banks could offer. They came back to me with several offers, but the rates they had to offer me were 7-12%.

Rates will vary by the state you live in, your credit rating, and the time of year. There are many factors a bank will take into consideration when offering you an interest rate for the next few years.

But before discussing with a bank about the rate, you can learn more about your credit score, so you can know where you are and how much your rate could be. There are options online that you can go and discuss with real experienced people. Credit Sesame is a good example. Creditsesame.com gives you a community of real people to talk to. They enable you to join in the conversation on how others improved their credit score so that you have a great way to learn to improve your own credit score.

Credit Sesame also helps you to save money. They offer advanced analytics that understand your personal credit and debit use and history. This feature helps Credit Sesame to be able to customize recommendations on loans to save you time.

It pays literally to shop around not just for the car you want but also for the rate you want to get. Having a lower interest rate can save thousands of dollars over the life of a car loan. Do your due diligence. It will pay you off.

 

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