America is a nation of car owners. With over 133 million cars on the road,
that means that there are 1.24 cars to every house in America! The amazing fact
is that over 70% of these vehicles are purchased using car loans.
With a huge range of car loans available such as direct loans or dealer
loans, it?s difficult to work out how much you can afford or which is best for
you. Follow these top ten tips and you can?t go wrong!
Top Ten Tips ? Getting the right car loan for you
1. Before anything, check your credit rating. If you have a credit score
<600 you may have to finance your car purchase using a bad credit car loan.
These loans will have higher interest rates but if you keep up your repayments
you will increase your credit rating. Eventually you?ll be able to refinance
your car loan at a better interest rate.
2. Spend time researching just how much your dream car costs. Try finding
price comparisons from local dealers, magazines and online. There are bargains
out there!
3. Calculate your monthly income minus all your expenditures to determine
just how much you can afford on a monthly basis. Stick to this budget or you?ll
find the car loan repayments tough.
4. Make sure you have enough money for the down payment. Loans have varying
requirements for this ? always check the small print!
5. Don?t just settle for the car loan rate from the manufacturer or the
dealer you purchase the car from. They can be extortionate. Even if they do try
and attract you with 0% interest rate advertisements, only people with perfect
credit ratings actually qualify for these deals.
6. Do your own research and shop around for the best deal for you. Seek
advice from banks, credit unions and loan institutions. Also, search online for
car loans too. Some of the best rates are available, it can save you lots of
time and searching for them is absolutely free.
7. Try to find an auto loan with an affordable monthly repayment that you can
pay back in as short a timescale as possible. If you can pay back your car loan
within three years instead of five, you will save yourself big bucks in the long
run.
8. Now you understand what you can afford, is that dream car within your
reach? If so - bonus! If the car loan repayments do not fit within your budget
seriously reconsider and purchase a car you know you can afford.
9. Once you have found the best deal for you, get pre-approved for this auto
loan.
10. Be strong when you visit the dealer. Know that they will try and persuade
you to take another financing option but just say no. Stick to the car loan you
found, the best loan for you.
