 TITLE: How to Negotiate a Car Loan CONTENT: Research Auto Loans and Interest Rates\n--------------------------------------\nWhen you work with a dealer, their finance department can shop around for your vehicle loan, getting rates from multiple lenders so you don't have to.\nThe downside is that dealers aren't legally required to offer you the best rates you qualify for. In fact, the rate you're quoted may include compensation for the dealer for arranging the financing between you and the lender.\nThis means it's a good idea to shop around and compare interest rates for yourself before you even head to the dealership so you know what's available based on your credit and income.\nMany lenders offer what's called a direct loan, which means they lend to you directly rather than working through a dealership.\nYou can also apply for car loans directly on lender websites, and some even prequalify you with just a soft credit check, which won't hurt your credit score. Even if you do have to submit a loan application, credit scoring models typically combine auto loan hard inquiries if they're all made around the same time—typically within 14 to 45 days of one another. This means your loan applications will have less of an effect on your credit scores.\nThis process of applying for and comparing auto loan rates and terms with several lenders can take time, but it's time well spent if it can help you score a lower interest rate.\nAlso, this process may be able to help you negotiate your interest rate directly with lenders. Some lenders may offer to beat any rate you get from a competitor, so the more options you consider, the better your chances are of saving money.\nAs you compare interest rates, make sure to look at the annual percentage rate (APR), which represents the total cost of borrowing, including both interest and fees. END