That feeling you get when you buy your first car? That feeling is freedom; the freedom to get where you’re going and take to the open road. Considering how many cities in this country lack mass transit, owning a car can be a lifesaver for anyone who needs to get to work, to get to their doctor or pharmacy, or to visit family and friends. That’s what you get when you buy your first car – a newfound sense of freedom.
However, if you’re looking to take out an auto loan through one of our loan officers, there are some important tips to ensure your car-buying experience beneficial, from start to finish. Here are some of our best tips:
- First, take your budget into account. This is probably one of the most important steps when it comes to taking out an auto loan. What does your current budget look like? Take into account how much you’ll have after your monthly bills, and in doing that, determine exactly how much you want to pay monthly for a car. Always keep taxes and dealer fees accounted as you look at what you’re willing to spend.
- Down payment – can you afford it? If you have enough saved to cover a down payment, you might have an easier loan experience with us. Considering that our loans are flexible, one of our loan officers can work with you regarding how big a loan you’ll need depending on whether you can cover your down payment upfront.
- Set up a monthly payment limit to keep your budget in check. Before taking out a loan, ask yourself this – how much are you willing to pay per month on an auto loan? To determine what you are actually capable of spending, add up your total monthly expenses and subtract that number from your monthly income. It’s a good idea to stick to that number, as paying a higher auto loan payment can reduce any expendable cash you may need throughout each month.
- Keep an eye on your credit score. Before you look into buying a new or used car, you should know your current credit score, as it can affect the type of loan you’ll qualify for and the interest rate you’ll pay. Websites like com can help with that.