SALT LAKE CITY — The car market has been a topsy-turvy one over the last few years.
Everything from supply chain issues to spiking interest rates have been a headache for sellers and buyers, but experts say there are a couple of things you should do before you head to a dealer.
Experts advise getting pre-approved financing before you set foot on a car dealership lot.
They say chances are that the financing offered by the dealership will not be as good as what you would find with an outside lender or a local credit union.
The more lenders you talk with to compare rates, the more likely you are to find a better deal.
According to LendingTree, the average person buying a $30,000 car and financing it over five to six years can save up to $5,000 by shopping around.
“It’s not just important because of the rates and things like that, but it can also be a bit of a bargaining chip when you’re going into the dealer,” said Matt Schulz, chief analyst for LendingTree. “It’s just another lever that the car salesperson can throw to where if you say, ‘I have this financing, but if you can match it, I would be able to use your financing’.”
You'll have the best chance of getting a better rate on your loan if you take a little time to clean up your credit if it's on the lower side.
Schulz also says setting a little money aside for a down payment can help you in the long run.