 TITLE: Buying a New Car? Here’s What You Need to Know CONTENT: Check Your Credit Reports and Scores\n------------------------------------\nIf you're planning to take out a loan on your new car purchase, your credit scores will have a significant impact on how much you pay each month and over the life of your new loan.\nAccording to Experian's latest State of the Automotive Finance Market report, the current average auto loan interest rates range from 4.19% to 14.88%, depending on where your credit scores lie. On a $20,000 car loan with a five-year repayment term, that's a difference of $105 per month and $6,269 in interest over the life of the loan.\nCheck your FICO® Score☉ to get an idea of where you stand. If your credit score is in great shape, you may have a good chance of getting approved with favorable terms. If, however, your score needs some work, it may be better to hold off on a new car until you can improve your credit.\nYou can do this by checking your credit report at AnnualCreditReport.com and seeing what areas need work. For example, if you have late payments in your credit file, get caught up as quickly as possible. And if you have high credit card balances, try to pay them down to reduce your credit utilization rate.\nAlso, look for errors that are hurting your credit scores, and dispute them with the credit reporting agencies to see if they can be removed. Building your credit can take time, but the potential savings are worth it. END