Buying a car can be a lengthy and difficult process for many people.
Here are some tips to get a good rate.
How can I get the best interest rate?
There are some restrictions on car loan negotiation, and if you’re not careful you could end up spending more. Read more about it here. However, there are some tips to get the best interest rate:
- Credit score: The higher your credit score, the lower your interest rate. This score is critical to getting a more affordable rate,
- Down payment: The larger your down payment, the lower your interest rate. Putting 20% is recommended. A general rule of thumb is for every $1,000 you put down, it will reduce your payment by about $18.
- Timing: If possible, do your car shopping at the later half of the year. October, November, December are good months to buy, but early in the week. These times are when salespeople are under pressure to meet quotas are are more likely to negotiate.
- Fees and taxes: These are frequently overlooked until the end of the car-buying process. If you can, try to account for them at the beginning and even pay them off in cash if you can.
- Refinance: Refinancing your existing car loan could save you money. If your credit has improved, or you want to reduce your monthly payments, this could be a good option.
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