Five Tips for Negotiating for Better Car Title Loan Deals
Negotiation doesn’t come easy for many people. Even if it could be the key to better deals on loans and products, the fear within can be quite overwhelming. When you think of the sky-high interest loans on car title loans, it makes sense to look for the best deals in the market.
The good news is that you can get yourself good deals that will not throw your financial life upside down. The trick is finding these deals. We have outlined five negotiation tactics that can inspire your lender to come down for you. If you are looking to get a car title loan, these tips will help you a great deal.
1. Do your homework
To know the rate you are willing to settle for, do your homework prior to meeting your preferred lender. Look up different companies and compare their interest rates. This will give you an overview of the market rates and what a discount looks like. While you are at it, you may want to research the most competitive rates available in the market currently. This will serve as a bargaining chip during the negotiation talks. If the lender still insists on giving you high-interest rates, simply show them an unbeatable offer by one of their customers. You stand a better chance if you have a good understanding of the competitor’s offering.
2. Educate yourself
Negotiation is a game of confidence and power. One way to feel confident is to be knowledgeable about what you are negotiating about. You need to speak the same language as the lender. Let them know that you are familiar with the loan acquisition process and your responsibilities. Apart from helping you negotiate better, this tip will help you sniff out red flags on the lender’s part and save yourself from looming trouble. Familiarize yourself with terms such as default, vehicle insurance, pay stubs, car resale value, single-payment, lump sum, etc. It will prove quite difficult to haggle if you don’t understand these things.
3. Don’t be afraid to walk away
Walking away is a huge part of the negotiation process. If your lender doesn’t seem to buckle and give you a better deal, take a walk. Remember timing is everything here. If you walk away too soon, you risk burning a bridge that you might need later. Not all lenders you walk away from will run after you. Approach this decision with calmness and tranquility. Slap them with a “great win-win” agreement. If they are till unreasonable and don’t want a win-win situation, it might be time to leave.
4. Loyalty is a powerful weapon
If you’ve worked with the lender a few times in the past, this might be a good time to remind them of this fact. Obviously, you must have a good track record with them before unleashing this card. If you are famous for being late on your payments, defaulting, and refusing to cooperate, you will not get too far with this tip. Arm yourself with all the proof of loyalty and don’t be afraid to show the lender every last one of them.
5. Set yourself as the ideal borrower
Are you the kind of borrower lenders love to do business with? If yes, this could be the key to nabbing low rates during a car title loan. Lenders love borrowers with steady sources of income, zero defaults, and no missed payments. A good credit score may help you through the door as well. If your car was manufactured after 2000, use that to get good rates. Some lenders don’t accept cars that were manufactured before 2000. In addition, mileage restrictions can play a huge part in the selection process. If your vehicle is within the limit, it makes you a good customer to work with. Mention this as well during the negotiation phase.
Emergencies are inevitable. When they strike, we have to get access to cash in a short period of time. Car title loans were designed for this very reason. Although they bear high-interest rates, you can haggle your way to better deals. Even if you weren’t born with the rare talent for negotiating, you can put the above tips into practice. The next time you apply for a car title loan, don’t be in a hurry to sign the paper yet. Take some time to talk to your ender and find out if they can get a favorable deal for you.