Financing Your New Car
If you decide to finance your car, you have the option of
checking the dealer’s rate against banks, credit unions,
savings and loans institutions, and other loan companies.
Because interest rates vary, shop around for the best deal and
compare the annual percentage rates (APR).
Sometimes, dealers offer very low financing rates for
specific cars or models, but may not be willing to negotiate on
the price of these cars. In addition, they may require you to
make a large downpayment to qualify for these special interest
rates. With these conditions, you may find that it is sometimes
more affordable to pay higher financing charges on a car that
is lower in price or to purchase a car that requires a smaller
downpayment.
Some dealers and lenders may ask you to buy credit
insurance, which pays off your loan if you should die or become
disabled. Before you add this cost, you may want to consider
the benefits available from existing policies you may have.
Remember, buying credit insurance is not required for a loan.