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How to Negotiate your way to the Best Car Loan

If you want to borrow money to buy a car, then it is worth making sure that you get the best possible deal. It is likely that you will be repaying it over a significant period of time and therefore you need to be aware of how much money that will cost you. You will probably find that it is rather a lot and so it is a good idea to see whether you can get the best possible deal so that you are not paying more than necessary.

Check your Credit Record

To start with it is wise to check your credit record. If you do not have a good credit record then you will not be given the best terms for your loan. This means that it is worth looking at it to check that it is all correct. If there are mistakes then you can get those corrected and you will have a better chance of getting a good deal. If you are thinking of getting a loan in joint names, then look at the credit record of both parties and if one is significantly better than the other, it might be better for it to just be in their name. You can still repay it from a joint account if you want to.

Look at Deals

It is worth taking time to look around at all of the car loan deals. There will be some from dealers as well as loans available from traditional lenders. Compare them all and see which you think will be the best one for you. Also check out the cost of borrowing with personal loan compared with car loans. Consider both the interest rate and the fees if the cost is the most important factor for you. However, also consider other things such as the terms, the reputation of the lender, the quality of their customer service and things like that. If you can find a better lender but not such a good price, then you may be able to negotiate with them.

Choose a Lender

Choosing a lender can be tricky though. You may prefer to go with one that you know, but they may not have any decent deals. You might prefer to pay less, but worry about the reputation of the cheapest ones. It is good to talk to friends and family about the different lenders and ask them to tell you about their experiences with that lender. It might be that they have used them and found them to be very good or that they have had a bad experience with them and would tell people to avoid them. It can also be good to look online and see whether you can find reviews of different lenders or comments about them which will help you to make up your mind.

Show them Other Deals

Once you have chosen your lender then it is worth showing them or telling them about the better deals that you have found. Explain that you feel the deal is very similar to theirs apart from the fact that it is cheaper. If you are in a branch then take leaflets or show them websites and if you are on the phone give them email addresses to look at.

Ask them for Best Price

It can be worth just asking them what the best possible price they can do is. If the person does not seem that helpful then ask to speak to a manager. A manager is also more likely to have the authority to authorise a better deal for you. Do ask them though and if they cannot change the rate then ask if there is anyone that you can speak to that can. It is worth discussing options that might lower the overall money that you pay out which will make it cheaper. This could include making bigger repayments over a shorter period or paying it off early. Obviously you will have to be sure that this is something that you can afford, before you negotiate it. Do think about how you will afford the repayments on the loan and if you do think that you may not have enough money then work out how you will free up what you need, before you sign anything.