Five Basic Things to Know About Auto Lending Before You Take A Car Loan

Five Basic Things to Know About Auto Lending Before You Take A Car Loan

Most people who buy a new or pre-owned vehicle from a dealership choose to finance their purchase rather than paying cash upfront. While this makes financial sense for most people, making a mistake while negotiating the terms of an auto loan can end up costing the borrower a lot of money. Here are five tips to help anyone tackle auto lending like a pro.

1. Credit reports sometimes contain mistakes.

People with lower credit scores often must pay higher interest rates on loans, so anyone considering borrowing money should become very familiar with his or her credit report. Sometimes mistakes happen. These errors should be fixed before meeting with a lender. Some shoppers might even find that dishonest lenders may try to claim their scores are lower than they actually are. Being familiar with all three reports could give the borrower additional negotiating power and save a lot of money in the long run.