How To Negotiate A Good Car Loan

Car shopping is hardly ever a fully enjoyable process. After spending time finding the exact car you want, you’ll have to secure the financing for it. There are many ways to finance a new car and some of those options can be expensive. In order to save money, there are ways to negotiate car loans or pre-approved loans before you set out car shopping. Always work with a reputable car loan lender such as the one found at Below are some of the top tips for negotiating a car loan with a lender.

Talk About Price

While it may seem simple enough, it can actually be quite hard in some cases to discuss the price. Car dealers love to negotiate payments instead of negotiating the full price of the car. This is because they want to set a price based on the most they can get out of you each month. When you fall for this sales tactic, you’re going to end up paying much more in total for the vehicle then you should have to. Always negotiate the purchase price, not the car payment price.

Short Loan Terms

Many lenders try to “work” with customers to lower their monthly payments. However, they typically do this by racking up the number of years on your loan term. Today, it is not unusual to see a car loan that lasts seven years. This is crazy because most cars depreciate very quickly. Never accept a car loan that is over five years long. People who accept car loans that are longer than five years can very easily find themselves stuck with a car loan that is upside down.

Negotiate Interest

Typically, your credit rating is going to determine what type of interest rate you will receive on your car loan. Just because your credit rating is not perfect does not mean that you should consider a loan with a ridiculously high interest rate. No matter how bad your credit is, you should never have to pay a usurious interest rate for the right to car ownership.

Purchasing a car can be an emotional experience. Once you have found the car that you want, it can be easy to get wrapped up in the sale of it even if you aren’t offered a good deal. However, you need to be strong and be prepared to walk away if your negotiations with the lender don’t work out in your favor.