Advice On Auto Loans & Auto Dealers

  1. Start with a copy of your credit report. If it's really bad, stop applying over and over because each rejection will just lower your score even more.
  2. Don't be in a hurry and do plenty of Internet research on both your preferred car and on possible rates for auto loans. Fifty-eight percent of all Americans do not buy a car within their first 30 days of starting to shop. You can find what you can expect to pay in interest on your loan, based on your credit score, at www.myfico.com.
  3. Don't fall for "zero percent financing" campaigns unless you have good credit. Truth is, very few people qualify so don't get your hopes up. And here's another thing -- zero percent financing almost always applies to new cars only.
  4. When it comes to talking with the dealership, try to keep things simple and separate. Settle on the total price of the vehicle first. Don't think in terms of monthly payments because any monthly payment can match your budget if the loan is stretched out long enough.
  5. If you're thinking about a trade-in, consider selling your old car on your own. It may be a hassle, but you might get a higher price.
  6. The more you can apply to a down payment, the better. Ten percent down is pretty much a minimum. Experts suggest putting at least 20 percent down as a way to avoid becoming upside-down later in the loan.

We say never apply to any Web site that doesn't list an address & phone number. Ours is on every page.