Feb 26, 2020
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Getting a new car is a big decision. You can spend weeks (or even months) researching the latest features and test driving different models before you find the perfect ride.
But locking down the right car loan is just as important — aside from a mortgage, your car loan will likely be the biggest financial commitment of your life.
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And yet, for some bizarre reason, a lot of buyers tend to go with the first loan they come across. It’s a rookie move and one that could wind up costing you a pretty penny.
More: Determine your monthly spend on a vehicle with car loan calculator
Say you took out a $20,000 loan for a 7 year term. If you had an interest rate of 6.5%, you’d pay $4,947 in interest. But if you shopped around first and found a similar loan at a 5% rate, you’d only pay $3,745 in interest – and save more than $1,200.
That’s why you need a company like LendingTree, that lets you compare car loans from multiple lenders to ensure that you’re getting the best deal possible.
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And best of all? You can do it all online in just minutes.
How LendingTree works
Answer a few simple questions and in just minutes, LendingTree will connect you with up to five lenders they think are well-suited for your financial needs.
Walter from Arnold, Missouri, says the process was simple and painless. “Within 30 minutes I had several lenders contact me, which gave me a lot of options. Everyone was very friendly and helpful. I did not feel pressured or intimidated. I was approved and had my money within 48 hours from the time of application.”
You can easily compare interest rates, loan terms, and monthly payments, and LendingTree provides helpful information and candid user reviews for each lender.
Shopping around for multiple rates with LendingTree is always free, and unlike going directly to a potential lender, it won’t affect your credit score.
So before you take the plunge and buy that new car, take a minute to shop around for loans — and save yourself a bundle.
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Shane is a reporter for MoneyWise. He holds a bachelor’s degree in English Language & Literature from Western University and is a graduate of the Algonquin College Scriptwriting program.
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