Auto loans are a necessary evil in today’s society. Unless you have a ridiculously large income or an overwhelming stockpile of cash, chances are you’ll need to borrow money to buy a car. And unless you’re independently wealthy, that loan is going to come with interest rates. Luckily, there are ways to get low-interest rates on used cars in sewell- if you know where to look. Check out these tips and start saving!
Buy from a private party
You don’t always have to buy your car from a dealership. In fact, buying from a private party can often be a smarter choice – especially when it comes to getting a good interest rate. When you buy from a dealer, they’ll typically try to give you the highest interest rate possible. They know that you’re already worried about the price of the car and their profit margin, so they figure they can squeeze a few extra percentage points out of you on the loan.
But when you buy from a private party, you’re in the driver’s seat (pun intended). You can shop around for financing before you ever commit to a purchase, which means you can get preapproved for a loan with much lower interest rates. And since private sellers are usually more motivated to sell than dealerships, you may be able to negotiate a lower purchase price as well. It’s a win-win!
Bring your own financing
If you really want to get the best interest rates possible on a used car, bring your own financing to the table. When you secure your own loan before shopping for a car, you’re essentially taking the dealership out of the equation. They can’t mark up your interest rate or try to upsell you on an extended warranty – all they can do is offer you the best price they can on the car itself. And since they know you’re not relying on them for financing, they’ll be more likely to give you their best price up front.
Of course, securing your own loan can take a bit of time and effort. But if you’re serious about getting the best interest rates possible, it’s definitely worth it.
Shop new cars as well as used cars
You might think that shopping for used cars in sewell is the best way to get low interest rates. And in some cases, that’s true. But if you’re not dead-set on buying a used car, you might be surprised to find that you can get just as good of a deal – or even better – on a new car.
Dealerships are always looking to move their inventory, so they’re often willing to offer lower interest rates on new cars than they are on used cars. And since new cars don’t come with the same depreciation worries as used cars, you might find that you can get a lower interest rate without sacrificing too much in terms of price. It’s definitely worth considering if you’re flexible on what type of car you buy.
Get your car loan preapproved
One of the best things you can do to get low interest rates on a used car is to get your loan preapproved. When you’re preapproved for a loan, you know exactly how much money you have to work with – and more importantly, how much interest you’ll be paying. That gives you a lot more negotiating power when it comes to actually buying the car.
Getting preapproved is easy – just talk to your bank or credit union and they’ll be happy to help you out. And once you have that preapproval in hand, you can start shopping for your dream car with confidence, knowing that you’re getting the best interest rate possible.