Auto Financing: Get The Vehicle You Deserve
What is Financing
Auto financing is a process in w
hich you can purchase an automobile through a third party service. The third party, often an auto finance agency, bank or dealership, technically owns the vehicle. You then make set monthly payments until the vehicle is paid off. Agencies can provide you with an auto credit loan. Once every dollar that is owed on the car is paid off, you officially become the owner. Financing plans are often stretched over several years, in order to make payments as affordable as possible.
Is Financing Right for You
Financing is a great way to obtain a vehicle you couldn’t afford on your own. You no longer have to choose the well-aged SUV over the new van with safety features out the wazoo. But, there are many factors that you must take into account when considering using an auto finance firm.
1. Do you plan to keep or trade the car once your auto credit loan is paid off?
2. Can you afford vehicle repairs during and after the finance period?
3. Do you plan on keeping the car for a long period of time once it’s paid off?
4. What is your credit rating?
5. Are you willing to commit to a lengthy financing contract?
How to Get Financing
Financing a vehicle is much easier than it’s made out to be. There are several simple steps you need to take in order to finance a car. First find the vehicle you are interested in financing, and then set up an appointment with your desired agency. They’ll take care of all nitty-gritty. Once approved for an auto credit loan you make a down payment (preferably as much as you can). From there you set up a monthly payment plan that fits your budget. All you have to do now is make the payments until the car is paid off. The end result is you becoming a proud owner of a vehicle.
What If I Have Bad Credit?
You can find an auto finance firm willing to give you financing regardless of your credit score. But, with a low credit rating you’re most likely going to have high monthly payments/interest. The higher your credit score is the better finance terms you will get, unfortunately it goes both ways. Although, financing a vehicle can actually build your credit score, and gives you vehicle equity.
Keep Your Eyes Open
- Make sure your monthly payments are affordable
- Be aware of hidden fees associated with auto finance services
- Is your vehicle expensive to maintain?
- What is the re-sale/trade in value of the car?
- Longer loans have higher interest rates, causing you to pay more in the long run
Getting an auto credit loan is a great opportunity, but it comes with a lot of responsibility. If you’re going to take on that responsibility, make sure you can handle it.