If you are in the market for a newer vehicle like a hybrid SUV or just want to know whether you qualify for competitive financing these tips are going to help give you a sporting chance. The first thing you should do is contact the top three credit reporting agencies and request a free copy of your credit report. You have the right to request this and the credit reporting agency cannot charge you for this free copy. What you will need to do when you receive the credit report is look for any potential mistakes inside the report, if there are mistakes inside the report then it will drag your credit score down and lenders rely almost entirely on credit scores when determining what interest rate they are going to charge. Unless you enjoy paying more interest than what is necessary you have to get these errors corrected by writing to the credit reporting agency right away.
Additional Steps to Take
After you have addressed the errors within your credit report you should consider paying down your outstanding credit card balances. By lowering the total amount of debt you have outstanding prospective lenders will perceive you as less of a default risk and reward you with lower interest rates. This will take time to accomplish but it is worth the effort over the long run.
Finding the Right Source of Auto Loans
Prior to looking for a hybrid SUV or any other type of vehicle you should try to shop around and find out what prospective lenders are willing to offer you. The simplest way you can do that is by going online and getting multiple quotes from a variety of lenders. While reviewing the quotes you must write down both the interest being charged and the service fees if any being levied by the prospective lender. When you have the total cost of the auto loans established then you can start looking for vehicles to purchase.
Instead of focusing on a brand new vehicle which usually experiences a tremendous amount of depreciation the moment you drive the car off the lot you might consider going for a previously owned vehicle. There are many great previously owned vehicles that are available out there in the market and if you are resourceful you may be able to find the one that matches your budget and goals. If you do purchase a previously owned vehicle you should consider investing in an extended warranty, while the upfront cost may be more the net benefit is you will have peace of mind knowing the vehicle is protected should anything happen to it.
The last thing you should do is purchase the vehicle through a dealership and not through a private individual. Dealerships have very strict laws they must follow while a private seller could sell you a lemon and you would be stuck paying on a vehicle you cannot drive so make it a point to only deal with reputable car dealerships and you shouldn’t have any issues realizing your goal of securing an auto loan.