To try and get the best rate possible, it’s important to:
Find out what the dealership can offer
Are you buying your car through a dealership? If so, you may want to finance your car through them, but save this step for last and don’t go to the dealership until you already have a low interest rate offer from another lender. Because salespersons at dealerships frequently receive commissions on car loans, they may be more willing to beat the best rate you received elsewhere. If they can’t, go with the lender who offered you the better quote.
If you need extra cash to purchase a car, Peachtree Financial Solutions may be able to help if you’re the recipient of an annuity or structured settlement payment stream. By purchasing some or all of your future payments, we can offer you a lump sum of cash. When you receive your cash in one lump sum, it may help you with:
Improving your credit score. Your best chance at a low interest rate on your car loan is a good credit score. If you have outstanding debts or other blemishes on your credit report, use your lump sum of cash to take care of past financial obligations and clean up your credit. It may take some time to repair the damage, but eventually, your score will bounce back and you may eventually qualify for prime rates.
Your down payment. Another factor that may potentially influence your auto loan’s interest rate, especially if your credit isn’t the best, is your down payment. There are so many other benefits to consider by using your lump sum of cash for a large down payment, including lower car payments. A larger down payment may also allow you to finance a more expensive car that you otherwise wouldn’t have been able to afford.
Avoiding a car loan altogether. Depending on how many payments you sell, how much cash you receive, and the price of the car you want to buy, you might be able to just purchase the vehicle with cash and avoid a car loan altogether. Imagine being able to own a new car, free and clear—without owing any money on it or having to pay back interest fees.
Are you interested in learning more about selling future payments for cash now? Contact Peachtree Financial Solutions today!
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.