"Have a bad credit score? No Problem! How to Get an Auto Loan in Minutes "target=" new" href="http://www.autofinancing123.com/"> Car Financing/a>/b> "is a general term for how the car is paid for. Most people who buy or lease a car pay for it by taking out an auto loan. Getting a credit check is part of this. Finding a way to pay for your car takes as much research and planning as choosing the car itself. You can also get financing from the dealer or the company that made the car. There's a chance that dealer/manufacturer financing will cost you more, but it's not a given.
There will be times when a dealer will actually give you the best deal. Even though dealers are always advertising "must sell," "lowest rates possible," and "no money down," these situations are hard to predict, and the only way to be sure is to shop around. The rates of interest for new cars are lower than those for used cars. In general, financing terms for new cars are longer than those for used cars. With this equation, a new car can often cost less than a used one.
KEY FINANCING FAQs:
Find out what you need and what you want before you start looking into how to pay for the car. If you've been looking for more financing on the car you need, and the news tells you that you can't get it, you've wasted time that you could have spent looking for your next car. Once you've chosen a car you feel good about, do some research on the car's history.
How much will my interest rate be, and do I have to make a down payment? The annual percentage rate (APR) is the best way to find out exactly how much interest you are paying. It is the amount of interest you pay each year on the loan's unpaid balance. Your credit score, which dealers get from your credit report, will have a big impact on the rate you're offered. And to answer your second question, most companies don't ask for a down payment, but some do.
If your application is accepted, the lender will give you this information before you sign anything. Does this deal depend on a third party approving the financing after the fact? Some dealers will offer you financing with a low interest rate at first, then call you a day or two later to say they couldn't get you financing at that rate, but they found a lender who will cover the loan for a higher payment. Don't let this trick you.
Before you leave the lot, make sure you know who is giving you the loan and that the deal is done. If there are any questions, tell the dealer you'll come back and get the car when everything is settled.
KNOW YOUR FINANCE AMOUNT NUMBER:
Don't let one number dominate you. For example, a really low down payment doesn't mean you're getting a good deal on its own. To know what kind of deal you're getting, you need to look at all the numbers.
In short, you need to know your numbers. Make sure you know how much you're paying, when, how, and for what at every step. No exceptions! Read every word of every paper you sign or initial and make sure you understand it. There are no exceptions.
