Almost everyone needs to acquire financing before buying a brand new or used car.
In fact, 70% of new car loans are done with financing. This can be a scary task if you’ve never done it before.
Don’t worry though; it’s not as difficult as it seems.
The first thing you need to do to start the car loan process is to shop around online.
This will help you find the type of loan you want and what will work well for you. Next, get quotes from many car loan companies online.
This is very easy to do and usually involves a form on their website. Compare all the loan quotes to find the best deal possible. You should always use the Internet to find your car loan because it’ll help you get the lowest rate. It also makes comparing loans very easy.
Many lenders and companies let you take advantage of a quick online loan. This will speed up the entire process and make it less daunting. After you’ve found the company you want to deal with, submit your loan application.
You’ll need to provide plenty of information like income and any debt you have. This will get you pre-approved for the loan. You’ll usually wait no more than 2 days before you’re contacted by the loan agent.
They’ll call you and go over the information provided to make sure everything is accurate. They’ll also let you know if you’re approved for your car loan. The next step is to provide more information and documents for the loan to go through. This may include proof of income.
Remember to find out all relevant information before agreeing to a loan. You need to know the down payment required, as well as the base rate and APR.
Ask if there are any prepayment penalties, which are charged if you pay your loan off early. There may also be fees that are associated with the loan itself so be sure to get an estimate.
Another important thing you should do right away before you consider a loan is to determine your financial situation and see how much you can afford monthly. Try making a budget for yourself. Add up your monthly expenses like bills and the mortgage.
Also, consider spendings like food and entertainment. What you have left after you consider all the expenses for the month is the basic amount you have to spend.
Don’t forget to account for the down payment, fees, and insurance, however. These can easily add a couple of hundred extra per month.