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Tips when applying for an auto loan

If you are like most people, when you purchase a car, you have to apply for a loan. Most of us don't have the cash to pay for the car. Boy, would that be nice!

Are you applying for a car loan?

Then review and follow these auto loan tips before you apply:

  • Shop around for the best APR (annual percentage rate). This is the actual interest rate you will pay over the course of one year on the balance of your loan.
  • Check if there are penalties for early payoff.
  • Read the fine print for "hidden charges" could be buried there.
  • Check your credit score before you apply for an auto loan. Your score will determine whether you qualify for a loan and more importantly, what your interest rate will be. The higher the score the lower your rate. Find out how to improve your credit score before you get an auto loan.
  • Fix any mistakes on your credit report. It is very common for mistakes to appear on credit reports. There is no need to be penalized for mistakes so make sure to review your credit report for errors and follow these steps to fix your credit report.
  • Get your paperwork in order. You will need to provide your name, address, social security number, employment information, whether you own or rent, the amount of your rent or mortgage, credit card info (card numbers and balances)
  • Try to make as much of a deposit as you can. The lower the balance you will finance, the lower your interest payments will be over the life of the loan.
  • Knowing the factory-to-dealer incentives can help you negotiate a lower price, helping to reduce your car loan. This is when the car manufacturer refunds a percentage of the car's price to the dealer. The dealer can sell a car at invoice and make money because they get a percentage back from the dealer. This is public information and help with your negotiations. The single best site for this type of helpful knowledge is Edmunds.com
  • Here is an auto loan tip that really me in my most recent car purchase: I got pre-approved financing from 1-800 AutoYes. I was able to apply for my auto loan online and the approval process was quick and easy. Nothing helped my negotiations more than walking into the car dealership with a check in hand for $30,000 with a great interest rate! They couldn't beat the rate that I got! Get your auto loan NOW - FREE 60 Second application with 1-800 AutoYes.

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