You’ve probably spent years thinking that your
dream car is out of your reach. But have you though
about a car loan? That car you’ve always wanted
could be just within your grasp!
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
- 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.
- 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!
- 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.
- Make sure you have enough money for the down payment.
Loans have varying requirements for this – always
check the small print!
- 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.
- 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.
- 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.
- 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.
- Once you have found the best deal for you, get
pre-approved for this auto loan.
- 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.
About The Author
The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting
Ecar-Loans as a finance specialist.
For more information please visit:
http://www.ecar-loans.co.uk
