When it comes to getting the best car loan, you need to do a four-step process. First, you need to determine your financial situation, shop for a car, do some research, and then go back to the dealership. When you go through the buying process without skipping a step, you will surely get the best loan that you will ever find.
First, you need to determine your finances. You need to know how much you can spend before you go for a loan. You need to make sure that you can afford the car financed and live comfortably. You need to sit down and think about all the extra money you have at the end of the month.
You will want to subtract gas money, car maintenance, and then you will find a reasonable amount for a car payment. It would be best to subtract all your bills and expenses from your income to get your disposable income. This will give you an idea of what kind of money you can throw around. You will want to make sure that you leave a percent in your account for costs that pop up now and then.
When you go to the dealer to find out what you can afford, you take your estimated purchasing power and tell your dealer. State that you can pay whatever. However, it makes sure that it includes all the fees for purchasing a vehicle. You may need plates, registration fees, taxes, interest rates, and so on.
Once you have looked over some cars, you can jot down some pin numbers to get a car report to ensure that you are getting the most for your loan. Then come back to the dealership and haggle if you must. This is the time when you go home, and you research everything. You need to research creditors, you need to research the car, and you need to ask around about the dealership.
You should go home and compare interest rates. You can get many of the quotes for free, and then you can find out whom you want to file with. You want the lowest rate possible not to end up overpaying too much for a vehicle.
When you go back, try to ask the dealer to lower your payment or your monthly payments. This is when you need to take full advantage of discounts and sales or rebates. You should also ask your dealer if there is any way that they can get you a loan with a lower interest rate. They may go back and crunch the numbers, and you’ll find it a great experience, but then sometimes you have to settle for an interest rate less than desirable because of your credit rating.
As a Registered Financial Consultant, I would not advocate for purchasing a new vehicle but rather a low mileage used one that is three to five years old. Buying a new vehicle is an unwise decision as it loses about a third of its value once driven off the lot. Never a good thing to instantly have an asset that sees such a drastic decrease in value. Hence, buying a good used vehicle makes more sense as the value has already decreased significantly in value as reflected by your purchase price.
To get current vehicle loan rates, you can visit https://www.bankrate.com/loans/auto-loans/rates/. In almost all instances, unless you have near-perfect credit, obtaining a loan away from the dealership is your better option so consider that before you begin looking. Yes, interest rates may be slightly higher for a used vehicle, but that is a secondary issue compared to the purchase price difference.
In an earlier post, we examined how looking online for a vehicle could save you money, and you may find that at https://kgmeyerpc.com/financing-a-car-can-be-found-cheaper-online/. When you buy a used vehicle instead of a new one, you can save the difference for another vehicle in the future or your retirement. To see the effects of saving money at a young age would have visit https://kgmeyerpc.com/investing-in-an-ira-at-a-young-age/.
