5 Steps to an Affordable Car Loan Finance Program

October 20th, 2016 by

While we certainly hope our customers find our finance programs affordable and fair, it is always important as a consumer to be educated on your options. We put together this small list for first-time or experienced New or Used Car buyers who were looking at getting an affordable finance plan.

1.) Shop for Your Auto Loan


This is extremely important. Talk to your current bank and request to see loan rates for the cost of the car you want. Take that information and head to a credit union. Check online credit unions. With all these separate quotes in front of you it is much easier to make an informed decision. When you finally head into the dealership to discuss pricing and loan options, you may even find that the loan the dealership may offer beats all of your other prices, or you may save yourself a considerable sum you can put towards a down payment! It’s all about having options. If you bank locally, sometimes they are in a better position to extend you a line of credit if you have been with them for a longer period of time.
Loan Stamp

At Wilde we offer extremely competitive rates, but urge our New and Used Car buyers to make informed decisions when making the important decision of purchasing a car.

2.) Only Spend Two Weeks Looking for a Loan


This is a bit of a trick. Every time you make an inquiry about a loan, your credit score will dip slightly. However, this only counts per every two weeks. So if you make as many as you can within that two week period, you will only suffer one penalty.

3.) Learn Your Credit History


Knowing your credit history and your credit score will allow you to make the most informed decision when choosing a loan program. Whether it be shady creditors or misleading online sources, having an accurate picture of your credit score and what is influencing it is key. Many credit history websites now offer this service for free, and some will provide your credit score as well. When you receive this information, look at it from a creditors point of view. Have you

made smart purchase decisions in the past? What kind of outstanding debt makes you more vulnerable to high interest rates? Get free copies of your three credit reports, from Equifax, Experian and TransUnion at

www.AnnualCreditReport.com

4.) Read the Disclaimers


If a bank or lender hands you a large document detailing the agreement, READ ALL OF IT. This is something that you are going to be dedicating your finances to for several years. If the lender is uncomfortable with you reading the fine print, walk away. I know it’s tedious and boring, but shady lenders can and will sneak in terms that could severely hurt you down the road. Here are some exmaples:

  • Mandatory binding arbitration: “It takes away your right to go to court for anything,” says Rosmarin.
  • Variable interest rate: Figure out the highest possible payment. If you can’t afford it, the loan’s not for you.
  • Prepayment penalties: How much will it cost you to pay off the loan early if you want to sell or refinance?
  • Is everything the lender promised in the contract? Oral promises are hard, if not impossible to enforce.

5.) Investigate your Lender


Before you get a loan in Milwaukee, Wisconsin or the surrounding areas, investigate who you decided to choose. The Better Business Bureau and several other Federal agencies keep tabs on lender to make sure they are not performing anything outside the boundaries of the law. Then I would recommend you get online and begin searching through customer reviews. Granted, a lot of reviews online are very jaded, but you can typically filter through and find the truth.

So that is a quick run through of the steps you should take before walking into the car dealership to negotiate. We are confident enough in our affordable financing options that we want our Milwaukee buyers to make the best decision available to them. Once you’ve taken the above steps and feel confident that you have made the right choice with a lender, bring it to us and we will take care of the rest!

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