The Market For New Car Loans

The current market for new car loans makes it a great time to buy a new vehicle. Although credit is tighter than it has been in the past, dealers are also eager to sell their new vehicles.

Particularly on high quality domestic vehicles, the loan rates and other incentives make it a great time to consider a new car.

For those auto shoppers who have suffered downturns in today’s difficult economic circumstances, it can be difficult to get new car loans. The rates and terms offered may be as bad as those offered at any other time.

It’s possible that they will be even worse, in fact, as underwriters and financiers are reviewing repayment ability more carefully than they have in the past, and are more likely to ask for verifiable documentation of current income and other evidence of the ability to repay before they offer a loan.

But for those who are weathering the economic times with good credit intact, the opportunity is perfect for the purchase of a new vehicle. New car loans may have very favorable terms, even if the days of zero interest and easy  credit are past for the time being.

One of the first stops you’ll want to make on your journey toward buying a new car is the automobile purchasing sites like Edmunds.com, CarsDirect, or Autos.com. These sites, among others, will help you find out what a dealer pays for the new car that you want to purchase. This information can help you when it comes time for a purchase. It also gives you negotiating power.

The next step you’ll want to take is to look for the best rebates and factory cash incentives that you can find. If you’re getting a new car loan anyway, make sure to make it the best deal you can by getting a rebate or cash incentive.

If you look to FightingChance.com and Edmunds.com before you go to the dealer, you’ll get a heads up on the rebates that are available, and will be in a good position to make sure you benefit from the offer and not just the dealer.

There are rebates of between $3,000 and $6,000 on some vehicles, and even typically conservative Honda, which has not needed rebates in the past, is offer rebates on some vehicles.

Since dealers are having a challenging time currently and are unable to offer the same kind of interest rates as they have in the past, it’s a good idea to get a credit report that includes your personal FICO score before you visit the dealer.

You can find your credit score at Experian, Equifax, or TrueCredit.

If you have the information about your score, you can be sure that you get the interest rate you deserve. The interest rates for those with credit scores below 700 are going to be higher than those over 700.

Checking at the dealer for their interest rates and terms, then going to your credit union or bank and checking their terms, then going to online sites for quotes will ensure you get the best possible deal on your new car financing.