A new study has revealed that many first time car buyers are not getting the best financing possible for their car loans, because they are ignorant of their credit score and other lending factors.
According to AOL Autos, a new report by Capital One Auto Finance shows that many buyers do not know the ins and outs of their financing agreements. Nearly half of first-time buyers did not know what their interest rate was. Only one-third checked their credit score before making the purchase, and 60 percent did not discuss their financing options with a third party. In addition, most buyers did not know they could apply online, with just 20 percent doing any kind of internet research.
Because of this, many buyers aren’t getting the best deals available to them. There’s a lot of confusing and often misunderstood information out there. For example, many with bad credit don’t know that they can get a car loan, when in reality there are many options for them.
One basic tip that the news source recommends is checking a credit report before contemplating a purchase. The report should list unpaid bills and other missteps. If the buyer pays these bills and corrects any errors that he or she may find, the buyer can raise his or her score dramatically in just a few months.