Gearing up for an Auto Loan? (cont.)
Contributed by Jessie Hart
Ask Questions Before Getting Your Auto Loan
How do you know if you are getting the best possible deal? Is it better to get an auto loan from the dealership, the bank, or a credit union? Here are a few key questions to ask that will help to provide a clear picture of even the smallest details of an auto loan offer.
-What is the actual interest rate? The APR (annual percentage rate) will give you the actual interest rate that you will pay on the unpaid balance.
-Are there any possible penalties included in your payment terms. Look for hidden penalties for actions such as paying off the balance early.
-What is the best thing to do with your old vehicle? If you've agreed to a trade-in, make sure that the trade-in money is being applied to your financing. Although it may be more lucrative for you to sell your car privately, it will be a lot more of a hassle.
-How much is the car? Dealers are often willing to give up ten or twenty percent of their profit margin in order to close the deal with you. Know how to haggle.
-What about the deposit? Once it's paid, can you get it back if you change your mind, or is that the end of the story?
-Can I bring the car back if I'm dissatisfied with it or with the auto loan deal?
