U.S. Auto Industry: Analysts Hint at Recovery

[Oct 26, 2009.]

 

With analysts forecasting "only" a 6 percent decrease in US auto sales for October, it's obvious that the industry still has a way to go before it fully recovers. As auto sales improve, deeply discounted auto financing offered by dealers may become increasingly scarce. If you're considering financing an auto purchase, here are some tips for getting a cheap auto loan and avoiding surprises that can result from making an auto loan decision based on rates alone.

• Shop auto loans before shopping for a vehicle: Shop for auto loans online, and compare rates and terms offered by your bank and credit union. Getting quotes from these sources before visiting auto dealers can help with negotiating and comparing auto loan options provided by dealerships.
• Compare vehicles: Consider your driving needs and lifestyle when buying a car. You can avoid spending too much or reducing the efficiency of vehicle use by choosing models specifically suited to your needs. One way to burn money is going to the car lot and "falling in love". What does this have to do with getting a cheap auto loan? If you visit the car lots with loan quotes and specific ideas of what you're looking for, you reduce the potential for driving off the lot in an overpriced ride. The less you pay for your car, the less you'll need for an auto loan.
• Bring something to the table: Dealerships advertise zero down payment financing, but this costs more in finance charges than taking out an auto loan with a down payment and/or trade-in. If your trade-in isn't worth much, consider a private party sale or donating your car to a qualified charity if you itemize federal tax deductions. Please consult your tax advisor for details. The more you can put down toward your purchase, the less risk to the auto loan company; you may qualify for lower auto loan rates and better terms.

Researching and comparing loan options can help you find the best deal on cheap auto loans.

 

About Author:

Peter Andrew has been writing about -- and for -- business for more than two decades. For the last couple of years, he has found himself increasingly specializing in the U.S. financial sector.