Many car buyers trade in their old vehicle for a new one while it still has a loan that has not being paid off. When the old car’s trade in value or resale value is not enough to settle off the loan, an auto dealer might offer you a “stacking loan,” this type of loan is intended to clear your old loan and finance you a new car; avoid it. Though it seems like the dealer is doing you a great favor, the truth is; you are taking out a much bigger loan than you were supposed to. Also, avoid unnecessary add-ons, not unless you really need them, some auto dealers make money off loans by adding dealer options that you do need and will never use.
Dec 192010
Dec 192010
Since America is a car loving country, then it logically follows that Americans are car loving people. With cars come loans, and finding a car loan can be sometimes tiring, this article looks at ten tips that would help you when in search for a car loan.
A lot of auto dealers have their own auto loan programs that they offer to the customer, however, the problem is that they might not offer the best rates, in other words, a dealer is a middle person in the lending process, and they have to work with lenders that will quote them wholesale interest rates, in addition to these rates, auto dealers may choose to mark up their rates by up to 3%, though uncommon, there are some dealers out there that will; so take your time to compare rates. Look for other lenders and compare the rates they have to offer, you can also check with your bank to see what loan rates they offer. You can see the impact that different interest rates have on your payment by inputting them into the car payment calculator.