Finding the right Auto Loan for you
ByFinding the right auto loan for you
When you buy a car, the two things the dealer is going to show you:
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Most likely the most expensive cars in your price range
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The financing to purchase the car
When the dealer shows you the financing package it would be based on how much you put down and your credit score. The more you put down the lower the interest rate (because the dealer is taking less of a risk). The higher your credit score, the lower your interest rate as well. At one time my credit score was bad and I had to pay 29 percent interest.
When you choose the financing package offered to you, you want to make sure that you can afford it. The higher amount of money you put down the lower your monthly payment would be. The longer of a time period you have to pay it off, the lower the payment. The higher your credit score, the lower the monthly payment would be.
Another tactic is to negotiate the loan. Just like buying a car, try to stretch out the loan payment or the interest on the deal. You always wanted to start off at a lower number that makes you look serious. For example, on the 29 percent interest, I probably should start off at 20 percent work my way up to what the lender wanted.
Another tactic, is to refinance to a lower interest rate in about 6 months to a year, only if you are making on time payments.You can always go to another lender or through your bank. The next lender wins because you are showing you can pay it on time, without any trouble and plus, you would pay off some of the principal.
No matter what interest payment is the most important factor is being able to afford it, now
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