How to Get a Car Loan

How to Get a Car Loan
in Riverhead, NY

Watch more How to Buy a Car videos: https://www.howcast.com/videos/408877-how-to-get-a-car-loan Whether you're a first-time borrower or a seasoned pro, this guide will make that car loan search a little less traumatic and save you big bucks in the long run. Step 1: Be stable Wait 6 months to a year if you've recently moved, gotten a new job, or had income problems before applying for a loan to get the lowest interest rate possible. Step 2: Plan a budget Gather your bills and plan a monthly budget to calculate the maximum loan payment you can afford as you search for the right car at the right price. Step 3: Check credit score Check your credit score to gauge how much money you can borrow and what your interest rate will be; a high score will give you more leverage and negotiating power. Tip Consider saving for a large down payment or get a cosigner if your credit score is low. Step 4: Reduce debt Reduce or eliminate outstanding debt, such as overdue credit card bills, insurance payments, or other loans before applying for a car loan. Tip Avoid too many credit cards or charge accounts to limit your risk to the bank. Step 5: Comparison shop Compare different interest rates, rebates, and other finance offers between your bank, the auto dealer, and other lenders. Step 6: Wait for bank approval Wait for your bank to approve the loan and then go and get your new car. Did You Know? The over 20,000 new car dealerships in the U.S. make an estimated $576 billion annually.