subject: Things You Need To Know Before Getting A Car Loan [print this page] For many, having a new car is not a luxury but a necessity. However, it is too difficult to save the money for years before buying the car so many opt to get a car loan instead. A car loan requires the buyer to make an initial down payment and then to make subsequent monthly payments. Unlike the case with leases, car loans allow you to purchase and use the car while you are still in the process of paying for it. Once you complete the payments, the car is completely yours.
Choosing the Right Car
Before you apply for a car loan, of course you need to decide first what car you will buy. Will you get a pick-up truck or a plain sedan? Make sure you choose a vehicle that you can actually afford. Nearly everyone wants a fancy sports car but very few people can afford to buy one. It doesnt make sense to slave away for years just to be able to buy a car that is way beyond your means. Decide on your budget and find a car that will fit within that budget.
Remember that you also need to factor in the cost of insurance when buying a car. This is something that most people overlook, so they find themselves spending more than they initially planned because of lack of proper planning. Be aware of other costs when buying a car so that you wont be taken by surprise.
Getting a Car Loan
The quickest way to find a company that offers car loans is by searching through the Internet. You can even get an online quote to check whether you will qualify for car financing.
Before you get a quote, you must determine the amount of down payment and monthly payments that you can afford. Remember that the higher the down payment you make, the lower the monthly payments will be.
When deciding the amount for your down payment and monthly payments, you should consider other factors. For example, how stable your income is. In addition, do you have secondary income streams in case you lose your job?
Next, determine the length of time you want to keep paying for your car. Do you want to finish paying off in three years or five? Its not fun to keep paying for a car that is on its way to the junk shop already.
All of these factors, aside from your credit score, will play an important part in determining the kind of car financing that you can get.
Asking for a Quote
There are now websites that can give you risk-free quotes for car financing by completing only one application form. You wont need to fill out several online application forms to get multiple quotes from different car financing companies.
Once you complete the application, you will get different offers from various lenders which will outline the terms such as the amount of down payment and monthly payments and the tenor of the loan. You will also get the maximum loan amount that you can get. GP
