How to get a good car loan – here are six tips

Thousands of car buyers complain every year about their loan or lease. When planning to buy a car, here are some tips to consider: 

• Shop for financing before you shop for a car. If you find a car you like and then have to scramble to find a lender, you may be faced with settling for lousy terms.
• Don’t sign anything called “conditional delivery” or “spot delivery” that says your terms, including your interest rate, aren’t final. If you feel like you have no choice but to sign a document like this, consider telling the dealership you don’t want to drive your car off the lot until financing is final.
• With poor or no credit, you may think you have to purchase a car from a dealer advertising “no credit-check” loans. Often this is not the case, and exploring options from traditional lending companies may result in a more affordable and safer loan.
• Never sign any documents until you or a trusted relative or adviser have read all documents you are asked to sign. Do not sign any document that states the transaction is different than you were told. Always keep a copy of everything you sign.
• If you get a call that your financing has fallen through and you have to return your car or pay more than what you agreed, call a lawyer.
• Say no to overpriced add-on products. You don’t need extra insurance products or service plans.

For more tips, visit our Buying a Car consumer guide.