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
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.
_________________
(About the Author)
Peter Siu is a successful
freelance writer providing valuable advice for
consumers when applying online for credit cards,
student credit cards as well as other personal &
mortgage loans. You can visit his sites at http://www.uscreditcenter.net and http://www.ukcreditcentre.com - His numerous articles offer
moneysaving tips on a number of topics.
More financial help - car loans
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