Importance of doing research:  
   
     Deciding to research your credit options and getting an actual loan beforehand is a very smart decision that will help you in closing stages of the purchase tremendously. By doing your research before going to the dealership, you will be able to learn what your interest rate is based on your credit rating, you will be able to compare the rates and shop around, resulting in the best deal for you. Difference in interest rate can mean thousands of dollars in savings over the long run. 

Why not dealership?     

     Generally, dealerships will either charge you more than market value of the car or make it up in other ways, such as interest rate. This is their personal favorite, because if you haven't done your research and not aware of what the interest rates the market has to offer, it is very easy for them to give you high interest rate without you being able to bring anything to negotiation table. This can mean thousands of dollars in losses.

The advantage is obvious:

     By having loan check in your hand for an amount you are willing to pay can help you tremendously during negotiation process. For example: if the price of the car is 8000$ and the market value (according to Kelly Blue Book™) is 7500$, you can make a bank check for 7300$ and try to convince the salesman to accept this price, because that's all you have to offer. If you really like the car, and the salesman won't budge, you can offer him 200$ dollars extra or so, saying this is the last money you have, which will give you tremendous leverage in negotiations.

What is the best way to get a new loan?

     The best way lately has been to apply through one of the lending firms online that will give you quotes instantly, so that you will be able to compare the rates before you accept them. Going to the bank limits your research ability to your local neighborhood, thus not allowing you to get the best deal. After getting the rate quotes, it is important to check the loan terms. What the closing costs are, what their policy on late payment is and what their pre-payment policy is. It's also important to understand if the APR is fixed or might change. How often they compound interest should be evaluated, because compounding period can affect the total cost of the loan you're paying in the long run.

What vendors would you recommend?

     Look around our website for financial companies that we partnered up with to provide you superior shopping experience.

I want more information before I make a decision.

     Check out our finance related articles to educate yourself about various components surrounding lending industry.