In this rough economy, getting a car loan can be a rather tough hassle, even for people who have excellent credit. But for those whose credit history is less than stellar, obtaining financing for any new or used car purchase can be surprisingly difficult. Regardless of your credit score, here are four excellent ways you can prepare for an auto loan and save money in the long run.
- Calculate Your Monthly Expenses – First off, find out how much you can actually go forward in terms of a car payment by calculating your monthly expenses. If you can afford to swing a car payment without interfering with your usual expenses, then you can move onto the next step
- Gather a Down Payment – Next, you should put back some money for a down payment on the car. The larger the down payment, the smaller the monthly car payment will be. As a result, you should shoot for the largest down payment possible. That way, you may also be eligible for lower interest rate.
- Choose the Car You’d Like to Own – You’d want to pick out three vehicles within a sensible price range make a trip to a nearby car dealership to see them “in the metal.” You’d want to select a card that you can easily afford.
- Have a Chat With the Salesman about Financing – Talk with a few car salesman about your available financing options, especially if you have a large down payment prepared. You might be surprised at what you find out.
At this point, you’re ready to obtain that car loan. Those with relatively good credit have plenty of options at their disposal, such as credit unions that offer traditionally lower rates than ordinary banks. If you have bad credit or no credit at all, you can look to a bad credit loan from a non-traditional lender.