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How to Score the Best Car Loan in Phoenix

The sun and desert in an urban landscape: posh resorts, hiking escapades excellent sports action, culture discovery and whole new gastronomic adventures.

These are just a few things that Phoenix, Arizona can offer. If you want to explore these attractions, you’ll need a great car first. On the other hand, you may just want to replace your old car with a new one. You will need to apply for a car loan to do that.

Applying for car loans in Phoenix is an activity that entails stressful bargaining, loads of documents to fill out and avoiding booby traps that might come along. Read the tips below if you want to get a deal that works with your budget and capacity. After all, you’re always looking for quick cash loans near me in Phoenix that work to your advantage.

Look for Places Where You Can Apply for an Auto Loan

There are some common places where you can apply for an auto loan, banks or credit unions, and dealerships. There is also the emerging online lending industry. Let’s weigh on these lenders one by one:

  •    Banks and credit unions

You can obtain loans from the bank in which you will already know how much you are qualified to borrow and at what rate. They get more interested in making loans to people with marginal credit. The catch with these guys is that they may cater only to people with good credit standing.

  •    Dealerships

You can also opt to go directly to car dealerships. Around half of the buyers go to them to pick the car and transact with the dealer for the loan. There are additional guarantees such as extended warranty and insurance. Even though convenient, dealers’ rates often include their markup which makes the loans expensive.

  •    Financers online

Online lenders can be advantageous for you since you don’t have to go around. Their loans are also competitive, which could work to your advantage. Always be aware of the internet because it may take you to sites that may cause you trouble instead of comfort.

Your Credit History Will Always Matter

The worst thing that could happen to you is to get rejected every time you apply for a loan. Do the right things before you fall and check your credit reports.

Hit to get a report from Experian, Equifax, and the TransUnion. The lender will use one of these sites to check your credit. It’s best that you fix everything first. There are also bad credit quick cash loans in Phoenix but expect high-interest rates.

Get the Whole Picture

Let’s face it; you always look at the monthly payments first when applying for a car loan. You’ve been doing it wrong all this time. Consider the three (or two) negotiations on the deal. There’s the financing, the price of the car and the value of the trade-in.

Study what you’re getting for these. The low monthly payment is usually a bait for you to avail of the loan quickly without looking in at the total sum of what’ll you pay. Get pre-approved before even going to your dealer.

What They Say Isn’t What They Mean

“Ours is the best rate in town!” says your first lender. Don’t believe it. Keep in mind that lenders are not obligated to give you the rate for which you qualify.

Dealers mark up their loans for as high as 2% on used cars and 0.7 percent for new ones. Make sure that you tell the lender that you’re looking around or you already have another offer. Be a good negotiator, and you’ll see better rates.

The Shortest Loans are Always the Best Loans

This is an often-overlooked rule in choosing a car loan. You should think of it as a competition where the runner with the shortest distance covered wins. It is what auto loans are all about.

More extended car loans have high interest rates. The longer you pay for your car, the more it’ll cost you in the long run. Experts recommend that you get a 48-month loan. Yes, you’ll have to pay higher, but you’ll drive your car out of debt (and keep a good credit score too.)

Make Sure That Everything is Final

Don’t sign the contract yet if you see “conditional” written on it. This means that your financers can still change the details which could land you in undesirable terms. Have all things settled out between you and your lender- down payment amount, length of the loan, monthly payments, and interest rate.

There is the chance that you can experience the yo-yo finance scam if you don’t follow this safety measure. Dealers will say that your financing was not approved and you’ll have to get a new loan with higher interest rates. You would want to avoid that, right?

Never skip your payments and be kind to your lenders! After all, you asked them a favor. It will be beneficial for you and your credit.

Go and Apply for a Car Loan in Phoenix!

The growth potential in the heart of Arizona is promising. More than a million people live and enjoy a relatively lower cost of living than in other states.

Phoenix’s car loan rates could go as low as 1.99 percent on a 48-month new car loan, which is well below the average of 4.16%. Even so, the highest rate you can get is still less at 3.5%.

Statistics show that 43% of the country’s car owners purchased their car through financing. It just takes weeks of research, good negotiation skills and smart decisions to get the most excellent deal.

Around 107 million Americans have car loans. Some are struggling to pay while others are already finished paying. Wouldn’t it be nice if you apply for a loan and cruise along the Grand Canyon State in your new car?

Remember, nothing will turn out bad if you’ve done your homework. You’ll get out of auto loan faster if you follow our advice.


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As a mechanical engineer turned blogger, Charlie provides readers with a technical, yet accessible look into the world of automotive engineering and design. His insightful posts make complex car technologies understandable.

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