Getting a new or “new to you” car is an exciting milestone, but also requires careful financial planning. Whether you want to avoid driving yourself into debt, or you simply want to take the wheel on your savings by making payments over time instead of one huge lump sum, Liberty Bay is here to help. Keep reading to learn 4 ways you can save on your auto loan.
1. Plan ahead before applying for an auto loan
Make sure to check your credit report before applying for an auto loan. This will give you a chance to correct any errors and double-check all information so that you get offered the lowest interest rate available. At Liberty Bay, for example, we offer auto loans starting at a very competitive and low rate. One thing you can do to put yourself in the best position to get such a low rate is to make sure there’s no fraudulent activity in your credit report! Federal laws allow you to pull your credit report for free every 12 months. You can get started today by visiting www.annualcreditreport.com.
You should also check to see what your car shopping budget looks like. Liberty Bay offers helpful financial calculators to help you decide how much you can afford to spend on a car, how long to expect to pay off your auto loan, and even the best type of loan for purchasing your car.
2. Get Guaranteed Asset Protection for your auto loan
When you get a car loan through Liberty Bay, you can accept Guaranteed Asset Protection (GAP) to protect your wallet and your credit. GAP covers your back in case your car is ever totaled or stolen. While we hope this never happens to you, we want to give you one less thing to worry about if it ever does!
If something happens and your car gets totaled, your primary insurance settlement may not cover your remaining loan or lease balance. The “gap” this creates can be a serious financial hardship. Liberty Bay’s GAP program waives all or part of that remaining balance so you can start looking for a replacement car without worrying about the deficiency left on your current loan.
3. Refinance your existing car loan
Let’s say you already have a car loan, but you want to lower your interest rate, make your monthly payments smaller, or otherwise set new terms that work better for you. Refinancing your car loan can help you put some money back in your pocket!
Often, people’s circumstances change in the time span between taking out a car loan and paying it off. Or, you may have recently financed a car directly through the dealership and learned you could be eligible for a lower rate. Refinancing with Liberty Bay will allow you to adjust your repayments to work best for your situation or schedule. Check out our current rates to help you figure out if you should refinance.
4. Borrow against your owned car at lower rates
If you already own your car and have no need for an auto loan, good news: you can still save by using your vehicle! Having equity in a vehicle less than 6 years old means you can borrow against it at a lower rate than an unsecured personal loan. If you need to borrow for any reason, doing so using your owned vehicle can help you save money in the long run.
Liberty Bay is here to help you save on your auto loan in every way possible. We offer competitive, low rates with up to 100% financing, Guaranteed Asset Protection, and more to help you get in the driver’s seat. We even offer fast pre-approvals and quick funding so you can hit the gas when you find a car you love or a great deal you can’t turn down! Are you ready to hit the road?