Buying a car and obtaining an auto loan can make you feel like a victim of their loan rates rather than feel like a customer. You may feel like you have no influence or negotiation points to try and obtain the best deal. When you are a single dad (father) or any single parent you may feel like you are going to have to take what they will give you. What needs to be understood however is that you can have a choice in your rates and there are things that you can do to help change these rates to something favorable for you.
When you are a single parent, what can affect the rate of your loan?
Now we might as well start with the most important factor. Your credit rating is by far the most important factor when it comes to rates concerning auto loans. A good credit rating can be the difference of having some negotiation power and not having any at all. Typically, the higher the credit rating the lower the interest rate on the loan.
Make sure that you keep your eyes open for car dealerships to have holiday sales or end of the month style contests. When they have these types of deals going on prices are usually lowered to try and inflate sales numbers. If you can find an opportunity like that then, it is in your best interests to consider them if you are in the market for a new car.
One point that most people forget about is looking into different loan providers. You do not have to settle with the financing companies that are contracted or owned by the car dealerships. There are other companies out there that will offer you better rates or you can use those better rates as leverage. Just be careful with those other companies and make sure you go over everything in the contract. Sometimes you can get offered a lower interest rate but they include some closing costs with the loan therefore increasing the cost of the loan. Not all companies do this but, it is something to be aware of.
Down payments will have influence over the loan as well. They can help you get lower rates and it can also help shorten the life of the loan because you will be borrowing less. Any money that you can come up with for a down payment is better than no money at all and leaves you in a somewhat of a vulnerable place when trying to negotiate.
In closing, if you are a single father (dad) or any single parent for that matter, having reliable transportation can be very critical for providing for your family. As long as you plan ahead you can give yourself the financial assistance or financial help that anyone can use. Don’t let poor preplanning stop you from purchasing the auto loan that you need for you and your family.