Interested in obtaining a car loan in Dallas, TX? Here are a few tips to help you save money on auto loans.
Know Your Credit Score
It’s a good idea to obtain a copy of your credit report and FICO score before you go auto shopping. You can also apply for an auto loan at your bank before stepping foot at the dealership.
Short Term Loans Tend To Be More Affordable
The interest can really add up on a 5-year auto loan compared to a 3-year loan. Many people choose long term loans because the payments tend to be more affordable. However, if your goal is to save money over the long haul, you may be better off with a short term loan. Calculate the interest accrued over various loan terms in order to find out how much each loan will cost over time.
Avoid Expensive Add-Ons
Some dealerships may offer costly add-ons such as VIN etching, paint protection, extended warranties and more. Going with the bare basics will save you money in the long run.
Negotiate The Purchase Price
Some buyers make the mistake of negotiating the monthly payment instead of the total cost of the vehicle. Instead negotiate on the total price, trade-in-value and financing.
Everything Is Negotiable
When you walk into a dealership, know that everything can be negotiated before you sign on the dotted line. Don’t hesitate to ask the associate to clarify any points if you have any questions.
Refinance Your Car Loan
Once you have been making payments for a duration of time you may consider refinancing if you’re able to obtain a lower interest rate.
Interested in obtaining an auto loan in Dallas, TX? Contact us for more information.