FINANCE RATES ON NEW VEHICLE PURCHASES

Many car buyers don't realize that they can negotiate the interest rate on their car loans. This is a very simple process and can save you thousands over the life of your car loan. You might be saying to yourself that if I ask my sales person the rate, how will I know they are telling me the truth about the rate that I was approved for. Just ask your sales person to see the bank approvals from the dealerships finance department. These documents are faxed to the dealer from the lending institution and they outline a couple of things. First it will specify the interest rate at what the lender calls "buy rate". This is the rate which the lender is offering you the customer. Now this is the important part. The dealer can add up to three percentage points onto this approved rate and that is how they make thousands off of you the consumer in obtaining your car loan. Lets face it all the finance manager of the dealership did was fax your application for the loan to the bank, and the dealer expects to make thousands for this simple task Now by asking for this one document you can then determine if in fact you might be able to get a cheaper interest rate through your own bank. Another great tip in having the dealer reduce your rate is to tell them that you plan on going to your own credit union. If the dealer agrees with you doing so then they are probably giving you the best rate possible. It still is not a bad idea to check with your own bank to see what car loan interest rate they can offer you prior to shopping for your new or used vehicle. Your bank will offer you, nine times out of ten, a much better rate than that of the dealer. The only time a dealer can drastically beat your own banks rate is when they are able to offer special finance deals through the vehicle manufacturer. These special rates usually require the buyer to forgo any rebates on the new car. Most manufacturers will only let you choose between their special finance deal or the special interest rate. Then you, the consumer are left with another task. Deciding which is the least expensive option for you to take. The rebate of the special rate. Check back and I will explain to you how to figure this out. It is quite a simple process and if you have any questions just email me at JOECARGUY68@AOL.COM.