Dominic Ferrara asked:
So you are thinking about buying a new car, have you figured out how to pay for it. Its a good idea to have all of your questions about paying for the car resolved before you shop. This also applies to anyone considering buying a used car, consider how you’re going to pay for it before you go out and shop for a car. Many experts agree that it’s often a wise idea to shop for a good car loan first before you decide what kind of car you want buy.
A good rule of thumb when looking for a good car loan is to find a car loan payment no more than 20% of money you have available each month after you pay for your living expenses. When looking over your budget, you should also take into consideration other costs like fuel, registration, insurance, and licensing. In order to find some of those additional cost, a good idea to call your insurance company and find out how much a new or used car will cost you in insurance expenses every month.
Before you go get a car loan, figure out a down payment of at least 10%. Most auto lenders would be skeptical of someone who comes in with less. However, you can find good inexpensive car loans on the Internet and they are available to compare against each other. If you have enough cash available to increase your percentage down you should do so because that will cut the principle of your loan and slash the interest payments you will have to pay overtime.
If you have really bad credit, which can result from making late payments on your mortgage or making late payments on previous car loans, you may find yourself in what lenders call a subprime financing level. If you have credit problems, you should first try and work it out with a consumer credit counselor or other advisor. It may be possible to combine or consolidate most your debt into one workable payment plan. If you show a loan officer that you are taking action to overcome the problems, it may be more likely to grant you a long term and reasonable rate.
Finally, be sure to check out other sources for auto loans such as credit unions or other organizations in which you are affiliated with. As a last resort, car dealers may offer special financing but quite often they are higher than what you could get online or through your credit union.
Monica
So you are thinking about buying a new car, have you figured out how to pay for it. Its a good idea to have all of your questions about paying for the car resolved before you shop. This also applies to anyone considering buying a used car, consider how you’re going to pay for it before you go out and shop for a car. Many experts agree that it’s often a wise idea to shop for a good car loan first before you decide what kind of car you want buy.
A good rule of thumb when looking for a good car loan is to find a car loan payment no more than 20% of money you have available each month after you pay for your living expenses. When looking over your budget, you should also take into consideration other costs like fuel, registration, insurance, and licensing. In order to find some of those additional cost, a good idea to call your insurance company and find out how much a new or used car will cost you in insurance expenses every month.
Before you go get a car loan, figure out a down payment of at least 10%. Most auto lenders would be skeptical of someone who comes in with less. However, you can find good inexpensive car loans on the Internet and they are available to compare against each other. If you have enough cash available to increase your percentage down you should do so because that will cut the principle of your loan and slash the interest payments you will have to pay overtime.
If you have really bad credit, which can result from making late payments on your mortgage or making late payments on previous car loans, you may find yourself in what lenders call a subprime financing level. If you have credit problems, you should first try and work it out with a consumer credit counselor or other advisor. It may be possible to combine or consolidate most your debt into one workable payment plan. If you show a loan officer that you are taking action to overcome the problems, it may be more likely to grant you a long term and reasonable rate.
Finally, be sure to check out other sources for auto loans such as credit unions or other organizations in which you are affiliated with. As a last resort, car dealers may offer special financing but quite often they are higher than what you could get online or through your credit union.
Monica
