Every American dreams of the amazing invention called car. The car dream is passed over from one generation to another. Everyone wants to get behind the wheels of a brand new car. Truly, buying a new car is the perfect dream.
When you set out to own a new automobile, auto loans become a necessity. This is because most new cars cost a pretty penny. Also, most of us don’t have ready cash to incur such an expense. If you are looking for a new auto loan, this comprehensive article can solve your problem.
Best Time to buy a Car
Most experts will suggest that it’s best to buy a car in the last quarter of the year. But, when you need a car, you need a car. You cannot wait till the year-end shopping season to buy what you need. The best time to buy a car is when you want it.
Why Auto Loans for New Cars are LESS EXPENSIVE now?
There are many lenders and auto financing companies who offer year-round great rates on new car loans. This is because of the constant cut-throat competition in the auto financing market. You can easily get approved for a low rate auto loan if you follow the following tips.
How to prepare for buying a New Car with Auto Loans?
Financial – WISE
Every great decision begins with planning. When you even decide the color of your new car in advance, why not plan your budget. A wise car buyer never discounts the importance of planning. Calculate your income and expenses. Once you know the amount that you can spend on monthly payments, you will see things in a better light. It will help you to decide on the loan amount and the car as well.
Credit Score
Getting a good score was important in school, it’s important even today. Understand that a better credit score will ensure better rates. If you have bad credit history, try to improve it before applying for a new car loan. Also, don’t forget to check your credit report because it may contain errors.
Down Payment to avoid Dangerously High Rates
Down payment is the wonderful life-saving drug in the world of auto financing. Paying 10% of total car loan cost as down payment can work wonders for you. Don’t worry if you don’t have money to make down payment. Use your old car as a trade-in. But, make sure that the car doesn’t have any lien because it will make matters worse.
When you buy a new car, car manufacturers offer cash rebates. You can use that money as down payment so that you don’t have to lighten your wallet. E.g. If you buy a new 2013 Ford Fiesta in Seattle, the company offers $1500 in cash-back scheme. If you buy a Chevrolet Camaro ZL1 in the same city, you will get $1000 as cash rebate.
Can you find a Co-signer?
Finding someone with a good credit score can be ideal for any auto loan. As the new car loan amount is more than the amount of financing a used car, lenders want to ensure safety. They feel more secure when they have a co-signer in picture.
Choosing the Lender
Understand your situation before filling the new auto loan application form. It will help you in choosing the best auto loan program. If you are a first time buyer, many lenders as well as car manufacturers can offer you an auto loan under first time car buyer program. If you are college student, there are many college discount programs available.
A bad credit borrower must ensure that he applies at a sub-prime lender only. Go for a lender that offers auto loans to low-income car buyers if income is a problem for you.
When you apply for auto financing for a new car, you have many options for getting car financing:
1. New Car Dealerships who offer financing
2. Online Auto Financing Companies
3. Auto Lenders
4. Banks
5. Car Manufacturers’ Financing Companies
Consider every option so that you choose the perfect auto loan program with lowest interest rates and flexible loan terms. Trust only those lenders who are reputed. Also, ensure the safety of the websites before filling the online auto loan application forms.