How to Finance a Car
Find out how much you can afford up front., Know your credit score., Compare loan rates online., Get the necessary materials together.
Step-by-Step Guide
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Step 1: Find out how much you can afford up front.
If you know the ballpark value of what you want to pay for a vehicle, and how much you can afford to pay in cash, you will know about how much you will need to finance.Maximize your down payment.
A smart way to finance a car is to get as much of a down payment as you can.
The more you can pay at the beginning of a deal, the less you will have to pay in interest.
Even if you have to temporarily sell some assets to buy the car outright, that can be a better deal than financing a major portion of the cost. -
Step 2: Know your credit score.
Much of the financing offer for a car is based on your credit score.
Those with good credit will get better interest rates and cheaper car financing offers.
This is important no matter who you finance your vehicle through.
Find out your credit score either through the dealer or online at websites like www.annualcreditreport.com, www.freecreditscore.com, www.creditkarma.com, or www.myfico.com.
If your credit score is higher than 680, you are considered a prime borrower and are eligible for the best interest rates available.
The higher your score, the better bargaining position you will be in. , There are many websites that compare deals at no cost.
Additionally, it is a great way to get in contact with various companies., Most lenders will want your name, social security number, date of birth, previous and current addresses, occupation, proof of income, and information on other outstanding debts. -
Step 3: Compare loan rates online.
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Step 4: Get the necessary materials together.
Detailed Guide
If you know the ballpark value of what you want to pay for a vehicle, and how much you can afford to pay in cash, you will know about how much you will need to finance.Maximize your down payment.
A smart way to finance a car is to get as much of a down payment as you can.
The more you can pay at the beginning of a deal, the less you will have to pay in interest.
Even if you have to temporarily sell some assets to buy the car outright, that can be a better deal than financing a major portion of the cost.
Much of the financing offer for a car is based on your credit score.
Those with good credit will get better interest rates and cheaper car financing offers.
This is important no matter who you finance your vehicle through.
Find out your credit score either through the dealer or online at websites like www.annualcreditreport.com, www.freecreditscore.com, www.creditkarma.com, or www.myfico.com.
If your credit score is higher than 680, you are considered a prime borrower and are eligible for the best interest rates available.
The higher your score, the better bargaining position you will be in. , There are many websites that compare deals at no cost.
Additionally, it is a great way to get in contact with various companies., Most lenders will want your name, social security number, date of birth, previous and current addresses, occupation, proof of income, and information on other outstanding debts.
About the Author
Nicholas Fox
Creates helpful guides on crafts to inspire and educate readers.
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