How to Save Money When Financing a Car

If you're in the market for a new or used car, your timing couldn't be better. Inventory closeout deals are expected to be more attractive than ever this year. Make sure you get the best deal by taking a few preemptive steps.

1. Check Your Credit Score
Knowing your credit score helps you understand how dealers and auto lenders evaluate your credit risk and the interest rate for which you likely qualify.

2. Compare Interest Rates
Investigate interest rates on financing from different sources. The Equifax Rate Finder is a free tool that tells you the interest rates specific lenders are offering people with your FICO credit score in your geographic location. This information can confirm when you have found a good deal, or point you in the direction of a better one.

3. Negotiate Your APR
You can negotiate your APR just like you negotiate the price of the vehicle. Credit history, current interest rates, market conditions, special offers and competition can impact the interest rates you are likely to receive.

Know where you stand with the help of Equifax Score Power, available online at www.equifax.com. It comes with a copy of your Equifax Credit Report, an explanation of what your score means, comparison with national averages and a graph of how lenders view you.

SOURCE ARA Content