Best Financing Strategy for Car Buyers
Best financing strategy for car buyers in the US—OTD first, shop rate, shortest term you can afford so you don't overpay.
The best financing strategy for car buyers in the U.S. is: agree on out-the-door price first, shop rate (bank, credit union, dealer), and choose the shortest term you can afford so you pay less interest and build equity faster. Here's the best financing strategy for car buyers.
TL;DR (1) Agree on OTD first—don't negotiate payment first. (2) Shop rate—get pre-approved from bank/credit union; compare to dealer; use the lower APR. (3) Shortest term you can afford—less interest, less negative equity. Use autopremo.com OTD calculator, payment calculator, affordability. Use autopremo.com.Step 1: Agree on OTD First
Negotiate out-the-door price (selling price + tax + fees) before discussing financing. Don't say "I want $X per month." Use autopremo.com OTD calculator and price checker to know fair value. Get your numbers at autopremo.com.
Step 2: Shop Rate
Get pre-approved from a bank or credit union. At the dealer, compare dealer APR to your pre-approval—use the lower rate. Ask for the buy rate if using dealer financing. Use autopremo.com payment calculator to see payment at your rate. See payment at autopremo.com.
Step 3: Shortest Term You Can Afford
Choose the shortest term you can afford—less total interest, faster equity build. Don't stretch to 72 or 84 months just to lower payment. Use autopremo.com affordability and payment calculator. Check at autopremo.com.
Bottom Line
Best financing strategy: OTD first, shop rate, shortest term you can afford. Use autopremo.com OTD calculator, payment calculator, and affordability so you don't overpay.