First Time Car Loan Budget Tips

Buying your first car is an exciting time in your life that you more likely than not want to share with other people. It’s not surprising that you might feel proud of your accomplishments by this time. Your car buying experience can be made more practical by basing your purchase off of your budget. A professional auto dealer can also help you to secure financing based on your budget, so keep the following tips in mind to get the right financing.

 

A consideration a first time car buyer needs to make is how much the car could cost in repairs. A person needs to establish an accurate budget in order to ensure that all bills, especially car loans, get paid, and car upkeep should most likely be a part of that calculation. A car dealer might be able to help a first time car buyer understand which cars are projected to need what amount of repairs. A person trying to buy a car could think about asking a dealer for assistance if that person wants assistance in understanding the different types of cars.

 

Another helpful technique for you to use when thinking about how to pay for your first car is to define what kind of car you need. A person’s requirements can vary from region to region, block to block. The roads near you may prove difficult during the winter months, so you might prefer a more rugged car. Alternatively, you may be struggling to find parking space in the city and therefore opt to find a smaller car. These are two examples that can both help you brainstorm about the kind of car you need. Then you can base your budget for your car off of your projected needs.

 

Then all that is left to do is visit the dealership and try out the car. Once you confirm that it is the right car for you, the dealership can help you with the details of getting your car loan based on your budget.

Buying Back Good Credit With a Used Car Loan

Financing a quality used car through a reputable used car dealer can be a great way to improve a lagging credit score.  A low credit score can sometimes make it seem difficult to purchase a vehicle, but there are options, no matter how low a credit score has fallen.

Credit scores fall due to many reasons.  The best way to raise a falling score is with good positive payment reporting on a credit account.  It can be very difficult to get that credit account with a low score. There are very few credit products available to those with low credit scores. Most banks will require a security for loans to anyone below a certain credit threshold. In most cases, these secured loans will not positively affect a person’s credit score, no matter how diligently payments are made.

One solution is with a quality used vehicle.  Used car dealerships often have relationships with many lenders and can easily handle both the purchase and the financing of your vehicle in house. Often they work with lenders who specifically assist those with low credit scores in purchasing a vehicle.

These types of car loans may require minimum down payments or cost a little more over the life of the loan, but they have two major benefits for the lower credit consumer.

Firstly, a low credit car loan through a lender that a car dealer has a good relationship with may allow an individual to purchase much need transportation which would otherwise be unavailable to them.

Secondly, and more importantly, even though these loans may coast a little more over time, these lenders work with credit reporting agencies, reporting on-time payments and helping raise a credit score over the course of the loan.

With on-time payments, the slightly higher fees associated with a low credit score loan through a quality used car dealer allow a consumer, essentially, to “buy back” a good credit score.

What to Look for in a Traveling Vehicle

If you like to travel or you have a long commute to work, when you look at used cars, you want to keep this in mind. You want a vehicle that has certain features to help ensure that your travels are cost-effective and comfortable.

 

Adjustable Seating

 

To ensure optimal comfort when you are driving, adjustable seating is a necessity. This is especially important for the driver because you want to sit comfortably and be able to reach the pedals and steering wheel without having to stretch or without being cramped up.

 

Functional Air Conditioning

 

When the weather is warm, not having air conditioning can be downright uncomfortable, especially when temperatures exceed 80 degrees Fahrenheit. Your vehicle can quickly become 100 degrees Fahrenheit or hotter inside, especially when your vehicle is in the sun. Air conditioning combats this so that you are cool and comfortable throughout your entire trip.

 

Adequate Fuel Mileage

 

When you travel a lot, the last thing you want is to have to stop often to fill the gas tank. Look for a vehicle that is fuel efficient so that you are getting the most drive time out of every full tank. This saves you both time and money when you are on the road.

 

Solid Suspension

 

As you travel around, it is inevitable that things like potholes and bumpy roads will come up. When your vehicle has a good suspension, this cushions the road to reduce how bumpy your ride is to help ensure optimal comfort, especially for passengers who want to take a nap and relax on the way to their destination.

 

As you can see, there are some features you want in your next used car so that you can travel with ease. This will also help to save you money and ensure that your time spent on the open road is comfortable, relaxing and fun.

How to Get the Lowest Monthly Car Payment

When it comes to car loans, a low monthly payment is something that many car buyers focus on. However, it’s important to understand how to get the lowest monthly car payment without paying really high interest rates or taking out a loan for longer than you actually need. We have a few ideas for you on how you can get lower monthly payments on your car loan and save money in the process.

 

Keep Your Credit Rating High

 

Lenders look at your credit score to determine the interest rate you’ll be offered on your loan. When you keep a good credit rating, you’ll be offered a better interest rate, which translates directly into savings on your monthly payment. With a better credit score you can reduce the overall term of your loan, so you’ll have fewer monthly payments overall but still be able to keep them relatively low.

 

Make the Biggest Down Payment You Can Afford

 

The more cash you put upfront for your car purchase, the lower your monthly car payment will end up being. Before you apply for financing, take stock of how much you are able to put towards a down payment. By organizing a larger down payment you’ll be setting yourself up for lower payments for the length of your loan.

 

Check Options With Payment Calculators

 

You can use a payment calculator before you apply for financing to compare how your monthly payment changes depending on the term of your loan and at various interest rates. This research gives you a better idea of the type of payment you’re likely to face and the ways you can reduce it by shortening the length of your loan.

 

Getting low monthly payments on car loans can be as easy as checking your options before signing on the dotted line. With a bit of advance planning, you can save in the long run.

5 Steps for Getting an Auto Loan

If you are like most new or used car buyers, you need to finance some or all of the price of your vehicle. For those with excellent credit, financing options probably seem endless. Fortunately, if you have imperfect on nonexistent credit, bad credit car loans offer a way to secure auto financing. Here are five steps for getting an auto loan.

 

  1. Check Your Credit

 

Before you begin to shop for a new or used car, you want to understand what your financing options are. The first step in the process is to check your credit score.

 

  1. Choose Your Payment

 

When you buy your new vehicle, you want to be sure you don’t overextend yourself. As such, make a complete auto budget, including loan payment, gas, parking, insurance, maintenance, and other car-related expenses. If you can pay for each of these expenses and still cover your other monthly bills, you might be confident you can afford the car you want.

 

  1. Seek Pre-Approval

 

Whether you apply at a bank, credit union, financing company, or dealership, you probably have several financing options for your car. By seeking pre-approval for an auto loan, you will know how much car you can afford.

 

  1. Find the Right Car

 

Knowing what car is right for you is trickier than it might seem. Think about your lifestyle and driving habits before setting foot on the lot. If you don’t plan to keep your vehicle forever, consider resale value. Finally, plan to look at several vehicles before you settle on the final one.

 

  1. Sign the Paperwork

 

When you secure an auto loan, you must sign several pieces of paper. Make sure you understand the loan terms and repayment schedule. The best time to negotiate them or ask question is before you sign the paperwork.

 

Whether you have excellent credit or need to apply for bad credit car loans, you will be in a better position if you understand the loan process.

What You Need to Know About Bad Credit Car Loans

Many people end up with bad credit at some point. While you may be working hard to make your credit score excellent again, you may want to purchase a used car right now. Dealing with bad credit car loans is enough to frighten anyone, but by familiarizing yourself with the terminology first, you can be confident you are getting a quality deal.

 

Credit Rating

 

Your credit score is influenced by your previous purchasing history. You can learn what your score is from various credit unions. Ultimately, your score influences what the interest rate on a car loan is. Higher scores show that you have been more responsible with money, so you can qualify for lower rates.

 

Loan Term

 

The loan term basically signifies how many months you will need to pay a dealership until the vehicle has been paid off in full. Different terms can be available. For example, you can agree to pay more every month and the overall term will be shorter. Conversely, you can agree to stretch bad credit car loans out if that would work better for you financially.

 

Down Payment

 

Every dealership, including us, will require you to provide a down payment. This means you offer a certain amount of money now in order to show you are serious about eventually paying off the car in full later.

 

Extended Service Contract

 

In addition to buying the used vehicle, you may also want to think about getting extra add-ons. An extended service contract is basically a warranty that comes with your vehicle, ensuring that it will continue to function optimally for a given amount of time.

 

You should never feel lost when you are in negotiations for bad credit car loans. Understand everything you are reading on a contract, so you do not end up agreeing to something you do not fully comprehend.

Beating Bad Credit

Low credit scores are tough to deal with, but they don’t have to ruin your life or keep you from being successful. Bad credit car loans are available for people like you who need a vehicle to improve their lives and advance their careers. However, as with all financial products, there’s a lot of variation in the types and terms of car loans you can be approved for as a person with bad credit.

 

Time

 

The amount of time you have to pay back your loan affects both the size of the payments and the number you’ll have to make. If you have experienced being overwhelmed by monthly payments in the past, you might be tempted to go for a loan with a long term. It’s generally a good idea to think twice about how much you can really afford to pay per month, and select the highest amount you think is reasonable. That’s because car loans for bad credit usually have higher interest, so the faster you pay it off the cheaper it is for you.

 

Money Down

 

The down payment will also affect the number of payments you have to make. Putting the maximum you can afford down will save you a lot of money in the long run, so don’t be afraid to write that big check.

 

Good Information

 

You might be surprised what you can accomplish when you partner with a dealership that wants to get you out on the road in a car you can afford. The trick is to get the right price so that a financial officer sees a car that will hold its value through the entire term of the loan. It’s no problem to advise you on what will work best for you financially, but only if you remember to bring along all the most recent financial documents you have so everybody can see the big picture.

3 Advantages of Buying Used Cars

While they can sometimes be looked down on, used cars are actually some of the most efficient, budget-friendly options on the market. If you take your time and work with our professionals in order to choose your new ride wisely, there’s nothing you can’t do in a used car. While many prefer newer models, there are several distinct benefits when it comes to owning a used model of any brand, some of them budget-related and others more practical. The top three biggest advantages of owning a used truck, car or SUV include:

 

Budget-Friendliness

 

The biggest and most obvious benefit when it comes to purchasing used cars is that they tend to cost much, much less than new cars on the market. This is especially important if you, like millions of other individuals across the country, are faced with budget struggles and have better things to do with your cash than spend your entire paycheck on your transportation. Price isn’t everything, but a lower cost certainly does help make life easier in the long run.

 

Dealing With Depreciation

 

Unlike a brand-new car, you won’t need to worry about your used car depreciating as soon as you roll off our lot. That means that you won’t need to worry about selling your car later on, and can rest assured that your investment is a sound one that’ll still be valuable in the future if you decide to sell in favor of another ride you happen to come across.

 

More Variety

 

We have a huge variety of used cars, spanning all sorts of makes, models and years. Therefore, your selection of your new vehicle is much less limited than it would be if you were searching for a brand new ride. This means you’re free to pursue a specific style you might like or a budget range you’re working with much easier than before.

 

With these three benefits in mind, it’s no wonder that thousands of people invest in used cars each and every year. Keep these benefits in mind when choosing your ride to get the most for your money.

4 Smart Reasons for Buying a Used Car

Your old car broke down after many, many years of use, and now you’re in the market for a new to you vehicle. While you have plenty of options out there in terms of vehicles, there are a few smart reasons why you should look into used cars for your next purchase.

  1. Value

The used cars you find will already have been through one or more owner, and they will still be in good enough condition to have another owner. You can’t beat value like that, especially if you plan on selling your used car in the future and going with a different model.

  1. Price

The best things about used cars is their price. If you don’t have a ton of money to spend or you are simply looking for a way to keep your expenses low, used is the way to go. However, as with any purchase, make sure that you save up for a solid down payment before you head into our dealership looking for financing.

  1. Dependability

You want a car you can rely on day in and day out.  In this sense, used cars are beneficial because they have already proven their dependability over the years. Plus, we inspect all of our used cars before they’re put out there to make sure they’re ready for sale.

  1. Safety

Not only do you want your car to be dependable, but you also want it to be safe when you drive it. If you find a used car on our lot, you can rest easy knowing that it is still safe to drive.

When it comes to buying used cars, make sure that you set a budget for yourself and stick with it when you come in to take a look at our selection. This way, you drive away with a car that’s safe and dependable for a price you feel comfortable with.

The Effects of Your Credit Score on a Car Loan

One of the reasons why people have to get bad credit car loans is because they have a bad credit score.”Credit score” can be used to talk about a few different scores kept in your credit file, but the one that is most important when it comes to lenders is your FICO score. Knowing and understanding this score will help you when it comes to getting a car loan.

 

Credit scores range from 300-850. They are calculated using a complex system and are based on your credit history. Anything good in your history raises the score, while anything bad lowers it. Good things include paying on time and making good use of your available credit. Bad things include missed payments, going over your credit limits and accounts in collections.

 

When it comes to auto loans, a FICO score of 540 or less will usually put you out of the running for a traditional loan. You’re only option will be bad credit car loans. This is just a general rule of thumb. Some lenders have a higher minimum. However, it’s pretty standard that interest rates will be higher as the credit score gets lower.

 

Having a low score also means higher monthly payments and shorter loan times. Lenders charge more for a bad credit loan because the risk is higher. If you have a low score, it means you haven’t made payments on time or met your financial obligations like you should have. This tells the lender that you’ll likely default on this loan, too, so they do everything they can to minimize their risk, such as charging higher interest and having you pay off the loan more quickly.

 

Understanding the impact of your score before you get a car loan will help you to know what to expect. It’ll give you insight into how much negotiation room you have and let you know what type of loan you’ll likely qualify for.