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Here is a list of things that I did recently when purchasing my latest vehicle to get a good interest rate. You can apply most of these to either new or used car loans.

Always get your financing first before shopping for a car

When buying a new car, if you have financing already in place, it’s much easier to negotiate over the price of the car if necessary. If you are pre-approved, you know exactly how much you can spend and the monthly payment. Try to get approved for a little more than you think you will spend, just in case.

The 0% financing trick - 0% financing or cash back rebate?

Don’t be fooled by 0% financing, unless your credit is almost perfect, you won’t qualify. If you do, you probably be required to pay the loan off in 2-3 years, not 5 like most loans. Be sure you know the amount of interest you will be paying over the term of the loan with your pre-approved amount in advance, because you might pay less total interest than the dealerships financing and want the cash back rebate.

Have your paperwork and check ready before you go

If you get pre-approved online for say $20,000.00, some companies will mail you a blank check and a letter to show the car dealership. This could take a week or more to receive in the mail. If they don’t offer to send it overnight, it might be worth it for you to pay the $15-20 fee. The finance person at the dealership will call the loan company after you’ve made your purchase and advise the amount of the check. Bonus - you will have to sign less than half of the usual paperwork!

Shop Online for a car loan or auto refinance

Whether it’s for a first finance or refinance, the rates you can get these days by shopping online are great. There seems to be more competition and that’s good for you. Make sure you are on a secure page before typing in your social security number.

Consider having an automatic deduction from your checking acct.

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