Rental Bay
If the idea of a new car is very appealing but the financial side of things makes you cringe, you don’t have to worry. These days it is as easy as ever to buy yourself a new motor car and sort out the payments required.
10 Invaluable Tips to Buying a New Car
If you are contemplating shopping for a new car, and are researching models and pricing online, you will also find an abundance of resources for finding an ideal auto loan.
Researching on the internet is the best place to start looking at models and costs. After deciding what kind of car you fancy, and which is within your budget, the next step is working out the repayments and loans. Most websites will also have links and pointers you can use to enquire about auto loans.
Once you begin looking for a car, options on auto loans are everywhere. Make sure you carefully research all auto loan offers, there are many good deals out there that can be made to suit each individual situation so don’t just go for the first great offer you find.
You'll even find financial calculators that will determine your monthly payments based on the amount you are financing. You'll likely be inundated with offers once you begin the calculations - I recall a variety of pop-up windows offering me auto loans with low rates and various incentives.
“…Most people need an auto loan when they buy a new vehicle, whether it's a car, truck, SUV or van. And since the interest on auto loans can add up over time--especially on a five or seven year loan!--it's important to try and get the lowest rate possible on your car loan…”
The best deal you can get from a car dealer or auto maker would be the 0% finance option. These deals can be hard to hunt down but it can be very advantageous for the customer. Usually 0% is offered for a year or more.
This means instead of paying off the monthly payments and the interest that is inevitable, the customer just pays off the interest only. Some banks will offer this deal also, though not many will at 0% but those who are competing for business may consider it.
This saves a lot of money and can really make a difference to customers who are in financial difficulty but need a car to get around.
Researching on the internet is the best place to start looking at models and costs. After deciding what kind of car you fancy, and which is within your budget, the next step is working out the repayments and loans. Most websites will also have links and pointers you can use to enquire about auto loans.
Once you begin looking for a car, options on auto loans are everywhere. Make sure you carefully research all auto loan offers, there are many good deals out there that can be made to suit each individual situation so don’t just go for the first great offer you find.
You'll even find financial calculators that will determine your monthly payments based on the amount you are financing. You'll likely be inundated with offers once you begin the calculations - I recall a variety of pop-up windows offering me auto loans with low rates and various incentives.
“…Most people need an auto loan when they buy a new vehicle, whether it's a car, truck, SUV or van. And since the interest on auto loans can add up over time--especially on a five or seven year loan!--it's important to try and get the lowest rate possible on your car loan…”
The best deal you can get from a car dealer or auto maker would be the 0% finance option. These deals can be hard to hunt down but it can be very advantageous for the customer. Usually 0% is offered for a year or more.
This means instead of paying off the monthly payments and the interest that is inevitable, the customer just pays off the interest only. Some banks will offer this deal also, though not many will at 0% but those who are competing for business may consider it.
This saves a lot of money and can really make a difference to customers who are in financial difficulty but need a car to get around.
How To Avoid The Mistakes That People Make When Buying A Car
Every bank will have auto loan options; it is a good idea to check your own bank and others as well. You may find one that one suits you better from another bank. All of their rates and monthly repayments will differ depending on the car and amount required. Finding the best rates and conditions will take a bit of research, but it is worth the effort.
Find out your credit rating. You can get one free report a year. If the current one is required you can buy it for a small fee. Its best to get your current rating as this will determine if you are in the bad credit rating section or not.
This can affect the type of loan that is available to you. Try to minimize the number of enquiries made on your credit report, to many and your lender may think you are still in dept and other lenders have rejected your loan applications.
One common method used to finance a new car is the ‘Bad credit car loans’. These are aimed at people with a poor credit rating who need a car. These are available from Auto dealers, online lenders and high risk lenders.
Anyone can find themselves in bad credit for a number of reasons such as divorce, bankruptcy, or just through making a few bad decisions.
“…Getting approved for an auto loan with bad credit is very doable. However, the tricky part is locating a good financing deal. When an applicant applies for a car loan with poor credit, some lenders are unwilling to approve the loan request…”
These sorts of loans are designed to protect the lender. They have high interest rates because the company or person lending the money is taking a risk by loaning the money due to the customer’s bad credit.
In this case it is best to research what is on offer as there are many types of loans in this category. If you have bad credit, buy the lowest price car you can. This will give you the lowest interest rate possible and therefore increase the likelihood of being able to manage the repayments.
Find out your credit rating. You can get one free report a year. If the current one is required you can buy it for a small fee. Its best to get your current rating as this will determine if you are in the bad credit rating section or not.
This can affect the type of loan that is available to you. Try to minimize the number of enquiries made on your credit report, to many and your lender may think you are still in dept and other lenders have rejected your loan applications.
One common method used to finance a new car is the ‘Bad credit car loans’. These are aimed at people with a poor credit rating who need a car. These are available from Auto dealers, online lenders and high risk lenders.
Anyone can find themselves in bad credit for a number of reasons such as divorce, bankruptcy, or just through making a few bad decisions.
“…Getting approved for an auto loan with bad credit is very doable. However, the tricky part is locating a good financing deal. When an applicant applies for a car loan with poor credit, some lenders are unwilling to approve the loan request…”
These sorts of loans are designed to protect the lender. They have high interest rates because the company or person lending the money is taking a risk by loaning the money due to the customer’s bad credit.
In this case it is best to research what is on offer as there are many types of loans in this category. If you have bad credit, buy the lowest price car you can. This will give you the lowest interest rate possible and therefore increase the likelihood of being able to manage the repayments.
Car Dealer Scams
The home equity loan is another option. Obviously this is risky as there is a chance of losing your house but the interest rates are typically less than a bad credit loan and the interest is tax deductable. If you are sure you are able to meet the repayments then this is a good option.
Once you have made you payments on time for over 6 months, or a year, you can refinance your car for a lower rate and your credit rating will improve.
Once you have made you payments on time for over 6 months, or a year, you can refinance your car for a lower rate and your credit rating will improve.