In the last couple of years, the market has made drastic changes, sparking higher prices than in years past, and people who are considering applying for a credit card or taking out a loan have to consider those changes before proceeding. Notably, these changes also apply to auto loans, which are one of the more common types of consumer loans and one of the top ways Americans finance new cars. If you’re thinking about applying for an auto loan in the near future, it’s important to educate yourself before taking the plunge.
Before you make an appointment with one of our loan specialists, here are a few things you should do:
Get started on your research.
It’s not uncommon for car buyers to select one of the first models they like while shopping. However, doing your research on different brands, models, fuel efficiencies, and car features can go a long way in saving money on the sticker price. Check out recent as well as current market prices on the kinds of cars you think you’d prefer, and you’ll be able to make a more educated decision when you visit a dealership.
Go in with a set budget in mind.
This is especially important because you don’t want your monthly payment to be more than you can afford. Once you know which car is the best fit for you and your lifestyle, create a budget based on your monthly expenditures — this should include house payment or rent, your regular monthly bills, how much you pay on average for groceries, and any extras. This will help you calculate how much you’ll be able to comfortably pay each month.
Ask us about what you need to do to apply for an auto loan.
It’s just as important to understand the process of borrowing money as it is understanding what you can afford in a new car. Before you apply for an auto loan, check out the overall cost of the loan, and make sure it’s within the budget you created. If you’re not sure if you’ll be able to afford the monthly payments, make changes to your decision-making process.
Our loan specialists have worked with first-time and experienced car buyers, and are able to answer any questions you might have. Visit our website to learn about our rates, application process, and financing.