Money Tips for Financing your next Auto LoanTips for Financing your next Auto Loan
1) Don’t buy more vehicle than you can afford. Set a monthly budget that you know you can afford. Take also in to consideration the cost of insurance especially if you are going to make monthly payments on your auto insurance. One way to ensure you can afford the payment is to get pre-approved for an amount that fits in your budget. Click here to get pre-approved
2) Down payment. Put as much down on your next loan as possible. This will help if you have bad credit. Bad credit lenders will likely approve you easier when you have a down payment. This will also reduce the total price of the car as well as your monthly payments.
3) Find someone to co-sign. If you have very bad credit your interest rate may reflect this and in turn your monthly payment will be higher. Finding a strong co-signer will reduce your rate and monthly payment.
After you have had the loan for a year or more you may qualify to have the loan exclusively in your name.
4) Early payout. On your next auto loan be sure to ask your finance expert if there is an option to pay the loan off early without any penalties.
5) Ask about Short Terms. Lower monthly payments generally mean a longer finance term. If the monthly payment is comfortable on a 5 year term as an example. Ask how much the monthly rate will be if you drop the term down to 4 years. This way you pay off the vehicle quicker. Also if the 4 year term is almost within your budget consider putting more money down. This is turn will also save you money in the long run.