People with perfect credit get the lowest interest on car loans, so take steps to improve your credit score if necessary, advises Forbes. To boost your credit score relatively quickly, dispute any errors that may have brought it down, negotiate with the creditors to remove past mistakes, request a higher credit limit and make sure that the current credit limit is recorded accurately on your credit report. Pay all bills on time consistently.
If you require a loan for less than $5,000, consider asking for more or saving money to pay for the vehicle directly, recommends Forbes. Smaller loans frequently have higher interest rates than loans for over $5,000. It is possible to refinance your car, which can bring monthly payments down while also reducing interest.
It is important to shop around to find the best possible interest rate, notes Forbes. Although it is a good idea to get a financing quote from the dealer, that figure should be compared with other options before a decision is made. Try to find a car loan from a direct source instead of having the dealer act as a liaison between you and the lender.
Consider buying a cheaper car if interest rates are out of your price range, recommends Forbes. Buying a vehicle outside of your price range can lead to serious financial hardships down the road.