New Car Financing For 4th Of July Auto Sales

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On the 4th of July, there is more than one way to get new car financing. Most people think that the new car dealership is the only one that can provide financing. This couldn't be further from the truth. You have many other options. When you're able to explore your options, you're able to take advantage of better deals and more affordable payments.

The new car financing you're looking for will greatly depend on how strong your credit score is. Find out your credit score and then it will be easier to know which options to explore. You can get your credit score by searching one of the major credit bureaus. These include:

  • Experian
  • Equifax
  • TransUnion

You can get a credit score from one or all three of the bureaus. When you apply for a car loan, most lenders will get your score from all three and then average them together to come up with the credit score they will rate you on. When you know your credit score, you're in control because no lender will be able to take advantage of you and tell you that your score is lower than it really is.

Lots of rates are out there. Doing a little research to see what the current going rates are is a great idea. You can log onto virtually any bank website and look at what current auto rates are to know what is being offered. It will be easier to know if you are getting a good deal from a lender if you have a solid point of reference to go on.

The Importance of Pre-Approval

When you get pre-approved for an auto loan, you're taking matters into your own hands. You will have access to a lot more lenders online than any new car dealership will have. The average dealership works with three to five banks, as well as their franchised captive finance company, to provide you with a loan. Aside from the captive finance company, you have access to these same banks as well as countless others when you decide to go online to get a vehicle loan approved.
New Car Financing

Captive Finance Company
An automobile manufacture's financial arm such as Ford Credit, Toyota Financial, or GMAC

A major advantage to pre-approval is that you can find out how much you are approved for. It's hard to get financed for a vehicle that is out of your price range. Sometimes you don't know what your price range is until you know what you can and can't be approved for. Once you learn what you can get approved for, you can shop more effectively on the new car lot to find something within your price range.

Comparison shopping is another reason to get pre-approved. You don't have to go with the first lender that approves you – or the second or the third. Take your time and explore your options. Look for good credit lenders or poor credit lenders based on your scenario. When you do more comparisons, you're able to achieve a lower interest rate and thus a lower monthly payment.

The new car dealership will provide you with financing. Sometimes the Captive Finance Company will have promotional rates and financing specials to help sell specific vehicles, especially on the 4th of July. When this is the case, it's hard to beat their rate with an online lender, but it's still a good idea to get pre-approved before you visit the new car dealership.

Car Loan Auto Financing Online

Do you meet the basic qualifications?

  • At least 1 year with current employer
  • A minimum income of $1,500 per month
  • No repossesions within the last year
  • Any bankruptcies must be discharged
  • Money down may be required, but not in all cases
  • Must be a current resident of the U.S. or Canada