WHEELING DEALS ON AUTO LOANS

Remember when you first got your license? You bought Uncle Joe’s beat up station wagon and paid him back with the leftover money from your paper route? If only auto loans could be as simple as that today! If you’re going to finance your next car, truck or motorcycle here are some preparatory thoughts.

BEFORE YOU GET IN THE DRIVER’S SEAT…

Sit down at your computer and research what the rates on auto loans are like in your neck of the woods. Rates differ throughout the country, so make sure you know which local lenders are doling out the lowest rates.

Also, make sure you’re looking at simple-interest auto loans - ones in which interest is paid on the original principal. You do not want to even consider “interest-first” auto loans, where interest is paid on interest.

Finally, get the shortest loan possible. Most auto loans can go up 72 months, good for low monthly payments- six years of low monthly payments! And because your dealer will have worked very hard to get your payments to the bare minimum, they’ll make sure the total amount you pay for the car is as high as possible. If you keep the payment schedule down to 36 months, you will pay more per month, but will have saved a ton of money once your vehicle is finally yours. Shop smart and drive safe!

ABOUT THE AUTHOR:

Carl Dupre is a successful writer who lives in Rhode Island with his wife and two children.