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You found the car you want, you made
it through the negotiation, and you shook hands with the salesperson
on a price that you both feel good about. If you are paying cash for
the car, you’re done. But if
you are financing your purchase, there is one more important
negotiation ahead of you. The salesperson will walk you back into an
office in the back area of the dealership to meet with a financing
officer. The finance officer will have a bunch of paperwork for you
to fill out, most important of which will be one that gives them
permission and the information that they need to get your credit
score. See
Facts About Debt.com
Many lenders use Credit Scores,
or specifically credit bureau scores, to help determine
whether you are likely to repay a loan on time. So, your score tells
the dealership how low an annual percentage rate that you qualify
for.
Here is another chance for your research skills to pay off. Before
you go to the dealership, you should get a copy of your credit
report, so you know what kind of rates that you should qualify
for. If you know that your score is high, 620 and up, you should be
offered the lowest rates possible.
But finance officers may not always
give customers the best rates that they qualify for. Car
manufacturers often have their own finance departments, so they make
more profit when selling customers loans at higher interest rates.
So, keep your comfortable clothes on, and remain prepared to walk
out without buying the car.
You may spend more time and meet
more supervisors before you agree on an interest rate for your
car loan. You should also consider shopping around for car
loans before you go to the dealership. Banks, credit unions, and
shopping clubs all offer car loans now, so you may be able to
find a better deal outside of the financing department of your
dealership. |
