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Kevin McCormally: I am Kevin McCormally of Kiplinger's and I am here with Mark Solheim, the Auto Editor of Kiplinger's Personal Finance Magazine to talk about how to get a good deal on an auto loan. Mark, Kiplinger's gives me a lot of great advice on figure out how much I should pay for a car, there are all sorts of great internet sites, is there any of resource like that can help me to get a good deal on when I pay for the loan I used to pay for the car.
Mark Solheim: No, Kevin there really isn't, unless the car maker is offering an incentive 0% financing, for example.
Kevin McCormally: So Mark what's a car buyer supposed to do?
Mark Solheim: That's a good question, because people often negotiate very hard often for days back and forth on the price of the car and then give up their savings once they get to the financing insurance office.
Kevin McCormally: What do you need to watch for?
Mark Solheim: The big red flag in the F & I office, is if they come down to the monthly payment. Here is your monthly payment, is that fit your budget because that no longer separates all your various transactions. So you are not sure what you are paying for your financing.
Kevin McCormally: So how do you make sure you get a decent deal on the loan itself?
Mark Solheim: The best strategy is to get pre-approved, go to your bank, go to your credit union or go online to a site like Capital One Auto Finance or E-Loan and get pre-qualified. Then you will know exactly what rate you have and if the dealer offers you a rate that's not as good as that you can politely decline and get your financing somewhere else.
Kevin McCormally: Okay, thank you Mark.
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