2/6/2024 0 Comments The loan arranger reviewsBut again, be careful, and always be ready to walk away if a deal doesn’t seem right. You might not end up using it, but financial institutions are usually better equipped to work within your budget.Īt the very least, preapproval will give you a baseline from which to work before you set foot in the dealership, and you may be able to use the bank financing to negotiate even better terms with the dealer. ![]() Some dealers may try to mislead you by advertising that they will pay off your car loan, which is rarely ever the truth.”Įxperts from CR and elsewhere say it’s always a good strategy to arrange financing with your bank or credit union before you go car shopping. “The contract should detail how any negative equity is being handled. “Make sure your contract clearly outlines your new loan amount, the loan term, interest rate, monthly payment, and other terms discussed verbally in negotiation discussions,” says Jon Salzberg, director of Credit Karma, an organization that helps car buyers get a credit score and keep track of their personal auto financing. Experts also urge extreme caution when rolling the balance of an old loan into a new one, saying that if you aren’t careful, the new amount you owe can be worth more than your car-a condition known as having negative equity, or being “upside-down.” ![]() That’s why it’s important to read both the sales and financing paperwork carefully, or even get expert advice before you sign anything. Although dealers sometimes offer better financing terms than banks and other financial institutions, their contracts can be confusing, and carry conditions that can cause problems later on. Roundtree eventually got another loan and was able to keep the Acura, but her problem understanding the complexities of the sales and financing contracts is shared by many car buyers.
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