How to Finesse Auto Loan Financing

Buying a car is probably one of the biggest personal financial decisions you will make. What you buy and drive says something about who you are as a person from the heavy-duty Hummer to the crazy copper Cooper. Cars and financing packages are as distinct as the owners who finagle them. Here are some basic tips and tricks on how to get your auto loan.

First, make sure your credit report is spotless. If necessary, take out a debt-consolidation loan to payoff other outstanding balances. You will need employer or income information handy, references, checking and savings account information, and try to gather as much of a down payment as you possible can afford. I have known people with shady credit who were financed by in-house money with the dealership who put up the financing themselves based strictly on where the purchaser worked because the dealership did business with the boss or the purchaser's company.

Second, if you are paying cash - flaunt it - and ask for all the perks thrown in free include cash-back bonuses which can be applied to the down payment. Make sure you get the interior, color and options you want and do not be so eager that you settle for what is on the lot. Any reputable dealer will find, ship and even personally deliver your car if the deal is by cash. You can make it a cash deal by using your credit card, however, ask the dealer to run it as a retail purchase and not as a cash transaction to save on the credit card fees. A lot of people do this to earn frequent flyer miles, cash-back bonuses, or other incentives offered by the credit card companies. Mastercard and Visa will somewhat ensure your purchase. Another option is to get a loan from your employee credit union, usually a lower interest rate than dealerships offer. The trick is to ask in the loan application for twice what you really want to borrow. If your credit worthiness is anything at all, they will at least offer to loan you half and maybe all you ask for in the loan. They will think you are settling for less, but you will be getting what you actually needed for the car in the first place.