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Follow these Tips to Negotiate a Car Loan

You took the time to find the right color, make, and model of the car you want to purchase. The next step is to get a car loan from a credit union or dealership. However, not a lot of consumers know that they have the ability to negotiate the car loan, which can lower the rate of interest. Here are four tips you can use to get the best deal on a car loan:

Avoid getting extras

Every salesperson, whether it is from the dealership or the credit union, will try to push extras on their car loans. For instance, they will give you great deals on rust-proof paint, longer warranties, and fabric protection. Although these extras are quite useful, they charge a premium, to get greater profits from customers. You can get the same extras from other vendors at a cheaper rate.

Focus on the price of the car

It is quite common for consumers to focus on negotiating the monthly payments, then the price of the car. The salesperson will always act like your friend and ask you how much is your budget for the monthly payments. Although it may seem like a friendly gesture, the salesperson is trying to push the deal according to the monthly payments.

Instead, you should focus on the price of the car. Visit various dealerships and credit unions to see who will give you a low price for a specific vehicle. Keep in mind that dealerships and credit unions make a huge margin for each purchase.

Increase the size of down payment

If you find that the monthly payments for the car loan are quite high, there is one trick that will bring down this figure. Start increasing the size of the down payment, which will bring down the amount you have to borrow from the lender.

These are the three tips you can use to negotiate a car loan. If you want to make sure that you get the best deal possible, irrespective of your credit score, get in touch with TakeTheDrive!


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