4 Expert Tips To Beat High Interest Rates on Your New Car Purchase

The good news is that though interest rates are high, 9% to be exact, there are still ways that you can save money at the dealership to avoid paying a $1,000 monthly car payment. 

Under no circumstance should someone walk into a dealership without having their facts straight. There are plenty of tools online to make this simple and easy.

Know Your Facts Before You Start Shopping

Edmunds, Kelley Blue Book, and CarGurus are all excellent resources for finding out what cars you can afford, what a fair price is, and how much you can afford to take on in a monthly car payment. 

If you want to trade in an old car, you should also research that car to ensure that you are getting a fair trade-in value for your old set of wheels.

A lot of dealerships offer in-house financing, but a lot of the time, this won’t be your best bet.

Shop for The Best Auto Loan Rate

Again, before you enter a dealership, you can secure your financing. Ask your bank or your local credit union for options and see what they offer before you look at dealership financing options. 

This may seem counterintuitive because financing over a shorter period will increase your monthly payment, but it will also decrease the overall amount you pay for the vehicle.

Opt For Shorter Loan Terms

When you’re in the negotiation stages and looking for a lower payment, salesmen often suggest you opt for a more extended loan period. All this does is lengthen the time that you’ll spend paying off your car and help the dealership make more money off of you in the long run. 

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