Purchasing a new or used car will affect your financing. Don't believe everything you see or read. Car financing may seem complicated, but it doesn't have to be.
When it comes to making a car purchase, paying for it is
a big part of the battle. Even mid level new cars run into
the $20,000 range. Because of these prices, few people pay
cash for cars anymore and statistically about 7 out of every
10 people use car finance to pay for their new vehicle. In
order to get the best car finance possible, you need to
understand how the whole process work.
First, you want to figure out where you are going to get
your car finance. There are a number of institutions that
can get you financing. Banks, credit unions, the dealership,
or even auto manufacturers can provide financing for your
new or used vehicle.
Second, with a car finance, you need to realize that whether
you buy a new or used vehicle will affect your financing. As
a general rule, interest rates will be lower on new cars
than on used ones. Also, new cars can often qualify for
financing over a longer period of time than can used cars.
Next, when it comes to our car finance, don't believe
everything you see or read. Commercials for special
financing for those who are first time buyer or have bad
credit abound in papers and on the television. These are
usually a little too good to come true and come attached
with requirements such as extra high down payments and
extremely high interest rates. In some cases, both apply to
the loan.
Before you go to get your loan, make sure you know about your
own credit history. Get a copy of your credit report and go
over it with a fine toothed comb. Look at the score as well
as the payment histories on it. If anything at all looks
incorrect, make sure you get it cleared up. When a lender
looks at how much money to give you, they will check out your
debt ratios, how long you have been at your job, your
history with similar loans, and your credit report as a whole.
Once you are armed and ready to consider your car finance,
shop around. It is usually a good idea to look for the
financing before you buy the car. You will better know what
you qualify for that way. Also, you can use your information
to bargain further with the dealer. In order for them to
finance your car, you should ask them to beat the rate you
have from wherever else you have looked.
Remember that everything is negotiable. Just because the car
finance rate you got is pretty good, it doesn't mean that you
have to pay what they ask. Negotiate the rate of your loan,
the price of the car, or anything else you can talk to them
about. It can't hurt and you could save yourself a lot of
money that way. As the process goes on, don't get caught up
in the numbers. The dealers will try to give you monthly
payment numbers only so that you don't notice any added
charges. However, sit down with a calculator and just figure
out the payments yourself and you will have nothing to worry
about.
Always know that car financing may seem complicated, but it
doesn't have to be. Educate yourself, shop around, and make
sure you know what is going on and you should have no problem.
Better yet, you will find yourself with a great new or
pre-owned automobile.
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