When purchasing a new vehicle, most people don't have enough funds to pay cash and must obtain car loan financing. Once you have found a car that catches your fancy, it would then be necessary to find a lender that suits your needs. While you may have no problem qualifying for car loan financing, it is important to shop around before deciding upon a lender. This can either be done by going to your local bank or banks, or going to the Internet and doing a quick online search for available options.
You have one distinct advantage with good credit, and that is being able to choose a lender before buying the car. This allows you pre-approval for a certain amount of money. You can be pre-approved up to a certain amount, and with this amount in mind, will be better informed on the limits of your budget. If dealers know you have already been approved for a loan, they may be more willing to negotiate a deal. Since auto salesmen earn by commission, every successful deal on their end means more money, and more incentive on their part to try sealing a deal with the customer.
Down Payment and Interest Rates
Your initial down payment plays an important role, as this will determine your car loan financing options. You get lower interest rates by making bigger down payment amounts. An auto lender would see you as more trustworthy and willing to commit if you make large down payments. There is one distinct drawback with car loans where the dealer offers zero down payment - you stand to pay much higher interest rates as a trade-off.
How Long Do You Have To Pay?
In previous years, sixty months, or five years, was the longest duration for car loan payment. These days, there are seventy-two month and eighty-four month packages offered by dealers. Because people have considerably more time to pay, this somehow encourages them to spend outside of their budget and buy expensive cars.
Unless you can pay off a luxury sedan or SUV in five years' time, it still wouldn't be too prudent to take advantage of these newer, longer terms. Once a car's warranty period expires, that means you pay for all repairs. This makes it common for people to pay more after all on their new cars because of all the costs they have to pay for maintenance.
You have one distinct advantage with good credit, and that is being able to choose a lender before buying the car. This allows you pre-approval for a certain amount of money. You can be pre-approved up to a certain amount, and with this amount in mind, will be better informed on the limits of your budget. If dealers know you have already been approved for a loan, they may be more willing to negotiate a deal. Since auto salesmen earn by commission, every successful deal on their end means more money, and more incentive on their part to try sealing a deal with the customer.
Down Payment and Interest Rates
Your initial down payment plays an important role, as this will determine your car loan financing options. You get lower interest rates by making bigger down payment amounts. An auto lender would see you as more trustworthy and willing to commit if you make large down payments. There is one distinct drawback with car loans where the dealer offers zero down payment - you stand to pay much higher interest rates as a trade-off.
How Long Do You Have To Pay?
In previous years, sixty months, or five years, was the longest duration for car loan payment. These days, there are seventy-two month and eighty-four month packages offered by dealers. Because people have considerably more time to pay, this somehow encourages them to spend outside of their budget and buy expensive cars.
Unless you can pay off a luxury sedan or SUV in five years' time, it still wouldn't be too prudent to take advantage of these newer, longer terms. Once a car's warranty period expires, that means you pay for all repairs. This makes it common for people to pay more after all on their new cars because of all the costs they have to pay for maintenance.
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A yearly Cary auto tune up helps you maintain ideal vehicle operation and prevent possible problems.
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