Getting a Car Loan from a Bank
Negotiate and shop around for the best rate
Getting a car loan from a bank is something that needs research and patience. You need to make sure that you get the right type of car loan to suit your individual needs. By shopping around you can make sure that you get the best rate.
Choose your own bank
Avoid sticking to the bank that your car dealer is tied up with. Do your homework and aim to get a loan before you actually purchase your car.
Check your credit report
Check your credit report before you think of getting a car loan from a bank. Knowing your credit profile can help you know where you stand financially. It can give you an idea of how much credit you may qualify for, making it easier for you to budget.
Choose a short loan term
Choose the shortest loan term that you can afford. Aim for a 3 to 5 year range. Anything longer is a waste of your money. A car depreciates, so the sooner you pay it off, the better.
Read the fine print.
Make sure that you read and fully understand your loan document before signing. Getting a car loan from a bank is something that should be done with a clear understanding of how loans work, what the terms are, as well as the associated fees and interest rates.
Assess your finances
When you want to get a car loan from a bank, make sure it’s something you can afford. You need to be able to afford to make repayments before you even consider getting a car loan from a bank.
Check the credentials of the bank
Investigate your lender and make sure that they are registered with the relevant regulatory bodies.