Buying a Car

What is the process of obtaining a loan?

1. Find the car you want.
2. Research interest rates.
3. Find out how much your CURRENT car is worth as a trade in.
4. Determine how much of a down payment you can make.
5. Now, apply where you get the BEST rates, and where the monthly payments and length of the loan fit YOUR budget.
6. If you get turned down for the loan because of your credit score, then take 6 months, build up a better one, and apply again.

CATION: DOWN PAYMENTS ARE EXTREMELY IMPORTANT!
Making a down payment on your loan is VERY important. By doing this you are not paying interest on that amount, and it makes your monthly payments less, you own less, i mean come on, can anyone think of a reason why making a good down payment is a bad idea? Didn't think so. 

Time Frame: The longer it takes you to pay it back, you're paying more then you think you are. After all the interest adds up, and all that hooha, you were better off paying AS MUCH AS YOU CAN, WHENEVER YOU CAN, then making minimal payments.

Over time, the value of your purchase becomes more and more expensive for you, the longer you wait. Don't put yourself through that. PAY IT OFF ASAP. Overtime your car would decrease in value, but you're paying EVEN MORE then you would have when you first signed up for the loan, even though the value of your car has went down.


When buying a car, and getting a loan and all that good stuff, three things you should know are:

1. MAKE A DOWN PAYMENT OF AT LEAST 10% OR MORE OF THE PRICE OF THE CAR.
2. HAVING A REALLY GOOD CREDIT SCORE AND THE "3 C'S" (COLLATERAL, CAPACITY, CHARACTER) THE BETTER DEAL YOU'RE GETTING! ( AS LONG AS YOU CAN PAY A GOOD AMOUNT EACH MONTH.)
3. ALTHOUGH YOU HAVE A GOOD CREDIT SCORE AND CAN GET A LARGER LOAN, DON'T THINK THAT MEANS YOU HAVE TO. DON'T PUT YOURSELF IN A TIGHT SPOT, WHERE YOUR LOAN DOESN'T MATCH UP WELL WITH YOUR BUDGET!

 

 

 

CAR LOANS ARTICLE



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