Navigating Car Loans and Financing Options

The video tutorial provides guidance on securing the best auto financing for a new car. It covers budgeting, understanding interest rates, and the importance of credit scores. Viewers are advised to shop around for loans, get pre-approved, and consider loan terms carefully. Leasing is also discussed as an alternative. The tutorial emphasizes the importance of being informed to save money and make sound financial decisions.

1. The larger your down payment amount, the _______ your monthly payments.

• lower

• higher

2. The higher your credit score is, the _____ your APR.

• lower
• higher

3. You should shop around for a loan pre-approval from a direct lender before going to the dealer because

• 3. It will help you compare terms that the dealer offers you

• Dealers always offer the best loan rates.

• Direct lenders typically have limited options for loan terms.

• Dealer financing is usually more flexible than direct lender options.

What are some reasons for not telling the dealer how much you want to spend monthly?

• It allows the dealer to tailor the negotiation to your specific budget.

• Revealing your monthly budget upfront may result in the dealer offering higher-priced vehicles.

• Disclosing your monthly spending limit may limit your bargaining power during negotiations.

• Sharing your monthly budget could expedite the process and lead to faster decision-making.