When you dream of your new car, nothing seems so important in front of buying it. Having a loan for your car can become really easy with Chase Bank, particularly if you have a personal savings account or checking account with the bank. This can help you lower the rate of interest up to 0.50%. To get the best deal for your car loan, you can keep the following points in mind:
- Shop for the car and loan separately
Prior to beginning the negotiation for the price or car, begin the process of loan application with the banks, credit unions, reputed online lenders, auto insurance company, etc. The credit unions may offer almost 1- 1.5% lower rate of interest than the bank, but if you are a loyal customer of Chase Bank, you can get a great deal too on Chase online login. When you have a pre-approved loan, you can negotiate with the car dealer much more strongly as you can sign the blank check instantly.
- Restrict the loan shopping period to two weeks
When you apply for a car loan, your credit score lowers whether you use the loan amount or your loan is approved. It makes it a little difficult to procure a loan at prime rates. However, if you apply for all the loans within two weeks, it is counted as just one enquiry.
- Know your credit history
You can know your credit history free of cost from some agencies. Else, you can also pay a small fee to know your credit score. Most of the times, the credit score you know and the one that your lender uses are same or close. A car loan can be purchased even at a lower credit score.
- Shop for the total amount of loan, not the monthly installment
When you shop for an auto loan, you should concentrate on the total amount of car loan rather than the monthly installments. Some lenders may induce you to have lower monthly installments for more number of months so that they can earn more interest for a longer period of time. On the other hand, when you focus on the total loan amount, you can calculate the installments later.
- Select the shortest tenure of loan you can afford
You do not have to extend the tenure of your loan if you do not need to. Since the car loan does not count as a productive debt, you must repay it as soon as possible. While a longer car loan may mean lower EMIs, but you have to pay it for a long time. A shorter car loan, if affordable, is the best option in the range of 4-5 years. A shorter car loan also means that you have to pay lower rate of interest.
- Shun the extras at the dealers
The accessories for a car may add a lot to the total car cost such as a music system, gear lock, center locking, etc. These accessories are essential and you must calculate their cost in the total expense.