So it’s time to purchase a new vehicle, and there’s nothing more pleasing than that new car smell. With air travel still in such a precarious state, some drivers are excited to trade in their old ride for something new and exotic. You may not have cash on hand, and that’s completely fine. Financing is a great alternative to help offset that crazy price tag into smaller manageable payments. Car shopping is stressful, and to help make the financing process less of a hassle - below are few tips to secure the best loan possible.
Check your credit report in advance.
Check all three major credit reporting agencies to plan in advance. If you need to dispute any mistakes or build your credit, checking in advance will help you properly do that. It’s also important to remember that your credit will be dinged with a hard check each time. Make sure you do thorough research to select the best dealer and lender for your vehicle needs.
Know what you can afford.
Set a time to figure out your budget before you lace up your sneakers and head to the dealership. Know your budget and stick to it. Try not to be too enticed by the moon roof and built-in GPS.
Following up on the suggestion to do your research, shop around for the best rate. Don’t just assume that the dealership has the best rates, sometimes community banks and credit unions offer competitive deals. Look for financing options with the shortest terms. The quicker you part of your car loan, the less interest you have over time.
Save up for a down payment.
Save up at least 20% of the total vehicle price; this will decrease the amount owed to the bank. This may also reduce your monthly payments and how much you pay in the long run in interest.
These are just a few tips to get you started on your financing journey. Staying equipped with the right information before you commit yourself can save you a lot of money in the long run. Coming in prepared will prevent you from being enticed salespeople and in a vehicle perfect for your budget and lifestyle.