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Cheaper Car Loans
By: Peter Kenny
Every time you go to a car dealer to buy a car, whether it be new or used, it is
highly likely that the dealer will also have on offer, various financing deals
that will assist you in paying for the car. While these may seem extremely
attractive, especially if you don’t think you could afford the car outright, you
should always check twice to make sure you are not getting ripped off or taken
advantage of.
The most important thing to know in these situations where the car dealer is
offering you vehicle financing, is that you do not have to take your car loan
from the dealer. There are a host of alternative car loan sources that will be
willing to lend you the money you need to buy the car, such as banks and other
lenders, and if they are reluctant to lend you the money you need, perhaps this
is an indication that you cannot afford the car and should look at buying
something cheaper or waiting till you have a bit more money saved up to make the
purchase.
Car dealers will often have offers for car loans that seem a lot more attractive
on paper than they actually are in fact. For example, you should always ask,
before considering an offer for credit, how much the car would cost if you were
to buy it with cash. This may show you a hidden additional charge of the credit,
because for example, if the car would cost ten thousand dollars with credit but
only eight thousand with cash, this straight away reveals as two thousand dollar
financing charge that you may not have noticed or calculated in to the cost of
the credit. If this were the case, you could borrow the eight thousand from your
bank and pay for the car in cash, taking advantage of this better price.
Always, ask the dealer what the annual percentage rate or APR of the loan is.
This is the standard way of costing credit and you can then use this figure to
compare the cost with other offers. Find out how many monthly payments you will
have to make and how much each monthly payment will be. Will there be a down
payment required at the start of the loan, or will you have to make a closing
payment at the end of the term. Since car loans can be such large expenses, it
is always worth asking these questions and making sure that you get the best
deal available on your car loan.
About the Author:
Peter Kenny is a writer for creditcards-gb For additional articles and an
extensive resource for everything about credit cards, please visit us at http://www.creditcards-gb.co.uk
and http://www.creditcards2go4.com
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