Want to get a car loan? We'll either soon or later. So, I wrote this short guide to help us get ready for an auto loan when the time comes.
- Down Payments: This depends on the lender, and some don't even ask for them. But it's usually around 10% of the price or $1,000, whichever is lower.
- Get Approved First: Don't look for a car before you know you're approved. First, you have to get approved, and then they will give you a voucher that tells you how much you can borrow. If you do this, you'll avoid future disappointments and frustrations.
- Interest Rate: Unlike what most people think, the interest rate is not set and can be negotiated. You can get a lower interest rate if you have a good credit score and are good at negotiating. But you can't do anything about things like the state of the economy.
- Know Who You Are! - If you want to get an auto loan, you need to know the basics. One of the most important requirements is that you must be over 18 years old. Best if you have a monthly income of at least $2000. The history of where you have lived and worked is also needed.
- Shop online. It saves a lot of time to look for an auto loan online. You can find the best deals by comparing prices on different sites. It's also easy to apply, and some sites can give you the information you need in just a few minutes.
So there you go. Well, that's not all, you still need to know a lot more. But I've listed the most important things you need to know before applying for that auto loan. Ask for advice from a licenced dealer or loan official is another thing to do. You can get help from them. If you don't understand something, ask them now, or you might have a lot of trouble later.
