CarSeekBlog

It has long been the case in the housing market that buyers who want their offers accepted should get pre-qualified first, and include a pre-qual letter in their offer package. These days the same is also true when it comes to car shopping.

According to an article recently posted at Philadelphia’s news portal Philly.com, even though the American economy is improving, getting a car loan is till a difficult prospect.

Last year, when the market was at its worst, consumers were largely unable to buy cars, either because they couldn’t qualify for auto loans at all, or because the loans they could qualify for came with frighteningly high rates. This year, the situation has improved somewhat, but credit is still an issue.

So how tough is it to get a car loan in today’s market?

John Murphy, lead U.S. auto analyst for Bank of America-Merrill Lynch told reporter Susan Tompor of the Detroit Free Press, “It’ll be tougher than it was three years ago, but it will be easier than it was in the first half of last year.” According to Tompor’s article, he also said that car sales may do better this year because of growing consumer confidence and cars that need to be replaced.

With car loan rates at record lows, it could be an excellent time to finance a new ride, but with loan qualification remaining difficult, it’s vital to do some homework before you ever test drive the new car or truck of your dreams.

Here’s some advice to help you through the process:

• Before you begin to shop, use a car loan calculator to determine how much you can afford.
• Consider many different sources of funds. While you can get financing at the dealership, you’ll probably get a better rate, a bigger loan, or both if you go through a credit union or bank.
• Always compare prices and deals before you commit. If you’re not certain a price is fair, consider visiting Kelley Blue Book or Edmunds to check prices.
• Be prepared to walk away if you think you’re not being offered the best deal possible.

Buying a car shouldn’t be scary; be proactive about maintaining good credit, get prequalified, and research the cars you like before you test drive, for the best buying experience.

Filed under: Buying Trends, Cash or Credit, Economy, Tips by Mel