Once you’ve been pre-approved for an auto loan, it’s time to compare interest rates. Interest rates vary from lender to lender, so it’s important to shop around and compare rates before you decide on a loan.
Here are a few tips for comparing interest rates:
- Get quotes from multiple lenders. The more quotes you get, the better chance you’ll have of finding the lowest interest rate.
- Compare APRs, not just interest rates. APR (annual percentage rate) is the true cost of borrowing money, including interest and fees. It’s important to compare APRs when you’re shopping for an auto loan, as this will give you a more accurate picture of the total cost of the loan.
- Consider your credit score. Your credit score will have a big impact on the interest rate you qualify for. Lenders typically offer lower interest rates to borrowers with higher credit scores.
Step 3: Negotiate the Best Terms
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