Hi folks, J.G. Wentworth here.
The first “big ticket” purchase most people make is a new or used car. Unfortunately, many first-time buyers (and even second and third time buyers!) do not understand that buying a car isn’t just about the price offered – it’s also about the specific terms that are contracted on the car loan.
So if you are thinking about purchasing a car, we at J.G. Wentworth urge you to take a quick look at our top 7 strategies on how to get the best financial terms on a car loan.
1) Don’t walk into that car dealership empty-handed!
Unfortunately, a common mistake many folks make is to simply walk into a car dealership, purchase a car, and then go straight to the dealership’s financial office to obtain a loan. A better option? – Walk into the car dealership with a loan letter from a lending agency already in hand, and then see how that lending rate compares to what the dealership is offering you.
2) Shop around for financing – starting with your own bank
Banks, local credit unions, other lending agencies – these are just a few of the places you should consider to try to obtain the best rates on a car loan. Starting with your own bank – which should want your continued business – take your time and shop around until you find the most advantageous loan terms.
3) Understand the implications of your credit rating
Your credit score will go a long way towards determining what terms lending agencies will grant you for a loan. It is therefore extremely important that you do everything you can to pay all your bills on time and to keep your credit score as high as possible – which will, in turn, keep your monthly interest charges as low as possible.
4) Don’t misstate your financial situation on any forms
Whether by accident or by design, too many folks do not come clean about their financial situation when they are applying for a loan. Apart from potentially breaking the law, this could prove very damaging in the long term, so make sure you accurately list your income, expenses, and/or existing debts on each of your loan applications.
5) Go online
The Internet is always a great place to start your search for great car loan rates. Bankrate.com, to give just one example, has information not only on standard car loan rates but also on online banks that may offer competitive rates. Just make sure the online bank you are dealing with is a reputable one before agreeing to any of their terms.
6) Recognize that the shorter the repayment period, the less you’ll pay in interest
When negotiating for a car loan, you’ll probably be given at least two options, one to repay the loan in three years, and the other in five. While it is always tempting to pay less every month, just recognize that this means you will be paying more money over time.
7) Do all the research you need to, and be patient
As usual, this piece of advice is last but certainly not least! That’s because it’s extremely important not to rush into any financial decision without educating yourself on all its possible consequences.
We are J.G. Wentworth, the nation’s largest buyer of structured settlement and annuity payments from folks just like you, and we take great pride in trying to offer our customers our best value for their future payments. We also understand how important each and every dollar is to our customers’ financial security and peace of mind, and hope the above list helps get you a great loan for your new or used car. And always remember that if you need more information on how J.G. Wentworth can help get you the money you need out of your structured settlement or annuity, call us anytime at 877-227-4713.
J.G. Wentworth and its representatives do not provide financial, legal or tax advice. You should consult a qualified tax, financial and/or legal professional for advice and information concerning your particular situation.