As you search for a car loan, you may begin to wonder if you are taking the right approach.
Many consumers don’t care how they find a loan as long as the rate is low and the lender is reputable. But here is the question: how can you guarantee that you are getting the best deal?
Here are three strategies to consider as you search for a car loan:
1. Call around to as many lenders as you can find. From local banks to national banks, don’t hesitate to contact three to five lenders (or more) in hopes of locating the one that is best for you.
This is the most time consuming option, but it will allow you to learn a lot about the industry and what each lender brings to the table.
2. Contact your bank. Do you do business with a local bank? If so, contact somebody to discuss your options for a car loan. Most banks provide this type of product, so they should be able to answer all your questions.
The primary benefit of this option is that you are already comfortable with the lender.
3. Let your dealer do the work for you. Rather than do anything on your own, let the dealer’s finance department step in and provide you with assistance. They can search local and national banks and credit unions for the best deal.
This saves you time and aggravation. The only downfall is that you have to trust that you are being provided the right information.
There is no right or wrong way to shop for a car loan. The only thing you should concern yourself with is finding a lender and loan product that you are comfortable with.
Do you have any other advice on finding a car loan? Which one of these strategies has worked best for you in the past?