There is no doubt that we all want to get a new car. It’s the hassle we have to go through to get one which is really the problem. Many of us have a vision of what we want to purchase, but fail to figure out how we are going to pay of it. That being said, we have to start getting smart with our finances and find a way to afford the car we have been dreaming about. You can go to friends and family, but that can create problems down the line. You might not pay them back when expected and soon you have a riff that’s broken you apart. The only other thing is to head to your bank or try auto financing at the dealership. Here are some things to know about the world of auto loans and how to make the right choices.
If you’ve been at your bank for some time, then you have a relationship that is already created. Some people have been at their bank for nearly 20 years or more. Use this relationship to put yourself into a car loan with a good rate. Talk with the representative who will see your long time of having a checking account with them and ask what kind of loan can you qualify for. Many personal banks have all sorts of programs we can apply for and might be approved for on the spot. They could be programs for students or military vets. Make sure you ask the specifics of the programs so you are not left holding more than agreed for the loan. Most banks will be happy to assist long-term customers and will try to get them a good loan with the best interest rates. They want to say thanks for your loyalty to them over the years.
When you walk into a dealership and start looking around you might not have thought about who you’re going to use to pay for the car. There really is no rush and you shouldn’t let any sales person talk you into something you will end up returning. Car financing is tricky because it looks so great on paper until you get the bill in the mail. If you’re not great with math, then bring a friend along who is and can talk to the sales manager. Too many people have found themselves in a lopsided deal where they chatted at the table on one monthly payment, but then the bill in the mail is triple. Do your research on car financing and find the best dealer with the most reviews. This will tell you that customers love this business and obviously they are doing something right. Never sign on the dotted line until you are confident the entire deal makes sense and you can afford the car once driving it off the lot.
In every industry there is going to be some scams run on customers. Unfortunately, there are some slick car sales people who try to put extra costs in the final deal you are working on. This could be an extra warranty they might say needs to be paid upfront in addition to getting the financing done. This is why it pays to go online and check out the dealership you are dealing with. If there are tons of reviews from customers telling the public to run the other way, take this advice and leave. Don’t be a victim of a car loan scam when you don’t have to. Learn what scammers can do before you step into the dealership. This will give you more control at the bargaining table as well.
When getting a car loan your credit score will be a factor regarding financing. It will set you apart from those who have to pay a large deposit versus those who don’t have to put anything down. You credit score should be good enough to get considered for an auto loan. It might be smart to call ahead and see if you can talk with the sales manager about what kind of credit you need to have in order to qualify for their loans. Most dealerships who are looking to move some cars off their lots are willing to be flexible. They understand that life happens to all of us and our credit isn’t as stellar as we’d like it to be. Take this opportunity to heart if you find any sale manager willing to make a deal on a loan that isn’t hung up on your lower than average credit score. Most people would love a chance to be considered on other things like payments on time or that you only have one debt collector.
When you do walk into a dealership looking for a loan, it’s going to take some time. It doesn’t go as fast as we would like and it will seem as if you’ve been there for hours. The dealership will ask you a lot of questions about your financial situation. You might have to call your bank and have them fax over paperwork so the sales manager can review it. Often times we go to a dealership when its a Sunday and all banks are closed. They can’t reach the representatives to verify your account and your other financial resources you are trying to add to the deal.
Try to visit the dealership during a workday as this could speed things up. You also might contact your bank before going to the auto place and tell them you are going to be making a big purchase or will need your banking info. Most information nowadays is online and very reachable from a laptop within a space that has WIFI. Try to be as organized as you can if you are bringing paper documents for the sales manager to look at. They will still have to call the financial institution on the paperwork to make sure everything is correct.